1. #2 - Why didn’t Jefferson like Hamilton? Course of a New Nation – A Conflict of Views

2. Conflict of Views Hamilton Born: Poor in the West Indies Wanted Economy: Based on trade and industry Loose Constructionist: If it is not in the Constitution it does not mean you can’t do it Jefferson Born: Wealthy in Virginia Wanted Economy: Based on agriculture (farming) Strict Constructionist: You can only do what the Constitution says word for word

3. Conflict of Views Hamilton Government Power: Strong Federal Government Afraid of: Mob rule In favor of: National Bank Envisioned: A Republic of wealthy elite Jefferson Government Power: Strong state and local governments Afraid of: Absolute rule (tyrant) Against: National Bank Envisioned: A democracy of farmers

5. Hamilton’s Economic Plan – A Source of Conflict  U.S. owes millions to foreign countries, private citizens – Hamilton’s Plan 1.Pay foreign debt 2.Issue new bonds (pay private citizens) 3.Take on states’ debt

6. Why controvery?  Some Southern states have paid debts, against taxes to pay for North – Then why do this?  Where does the District of Columbia fit in?

7. Hamilton’s Plan for a National Bank  Proposes Bank of the United States:  funded by government, private investors  issue paper money, handle taxes  Disagreement:  authority to establish bank not in the Constitution  would create alliance between rich and the federal gov.  Debate begins over “strict” and “loose” interpretation of Constitution  Bank is established

8. New Taxes…  Protective tariff: tax on imports to protect American goods  Excise tax: specific goods - whiskey to make more money

9. They Must Compromise Move Capital to Washington DC

10. Washington DC