1. Hamilton and National Finances
Treasury Secretary Alexander Hamilton developed a financial plan for the national government

2. Key Terms and Key People
Key Terms National Debt Bonds Speculators Loose Construction Strict Construction Bank of the United States
Key People Alexander Hamilton Thomas Jefferson

3. Common Bonds!
Alexander Hamilton’s Main goal was to pay off the National Debt which totaled $11.7 Million in Foreign Debt and $40.4 Million in debt owed to citizens
The United States Governments issued bonds to pay down the debts but could not guarantee the value of the bonds which led to speculators buying them at lower prices than the value
Hamilton’s Plan was to gradually repay the FULL value of the Bonds which would allow the speculators to make a profit
Thomas Jefferson thought that the bonds favored the rich and opposed them but the government issued new, FULLY guaranteed Bonds

4. Moving Day
The United States had a Revolutionary War debt of $21.7 million and Hamilton wanted the National Government should pay it back
Taking the debt away from the states would increase business and put money back into the Economy
The south had already paid back their war debts and thought that it was both unfair and unconstitutional
In order to gain southern Support Hamilton, Jefferson, and Madison agreed to move the Capital from New York, to Philadelphia, to Washington DC.

5. A Musical Fight
Jefferson and Hamilton begin to debate the role of our national Government
Hamilton wanted a strong central government that made decisions for the people and protected their civil liberties but Jefferson wanted more decision making power to stay with the average citizen
Hamilton also wanted to grow the economy by focusing on business manufacturing and high tariffs while Jefferson wanted to focus on farming and lowering tariffs to lower prices

6. Take it to the bank
Hamilton wanted to create a national bank where the government could keep its money and make loans to governments and businesses
The bank would have a 20 year charter where congress would be able to extend the bank
Hamilton Encouraged states to create their own state banks to prevent monopolies with the national bank

7. Jefferson and Madison disagreed with Hamilton because the National Bank gave the national government too much power and was NOT in the constitution
Hamilton Argued that the constitution had a loose construction and used the ELASTIC CLAUSE to create it
Jefferson Believed in a strict construction of the constitution and said the ELASTIC CLAUSE should only be used when its NECESSARY AND PROPER not because it is convenient
George Washington, and congress, agreed with Hamilton and created the Bank of the United States to make the economy more stable

8. This has been another world famous Mr. Green PowerPoint presentation!
This presentation was a vocabulary sandwich!!