Domestic Challenges of the 1790’s

Hamilton and Economic Policy  Wanted to pay off federal debt  State debt would be assumed by fed. gov’t  Increase taxes to pay down debt  Increased tension between North and South  Industrial v. agrarian (farmers) goals  Federalist v. Antifederalist debate  Stronger gov’t v. individual rights  1791 – vote (barely passed) to create national bank, higher taxes, and national capital

Loose v. Strict Construction  Methods of interpreting the Constitution  Loose  Implied powers/broader powers for the federal government  Goal of “general welfare”  Strict  Weaker federal government  Not in the Constitution – can’t have it

Whiskey Rebellion  Farmers resented excise taxes on whiskey  1794 – farmers in western PA harassed tax collectors  Federal government sent 12,000 troops, resistance melted away  Jefferson argued that Hamilton/Washington over- exaggerated rebellion to demonstrate increase in federal power