1. Hamilton and National Finances
I’m a financial genius!

4. Settling the Debt National Debt
After the war the U.S. has $50 million in debt

5. Settling the Debt States’ Debt
The states owed $25 million
Hamilton wants the government to pay $21.5 million of this debt

6. Answer on the back
Do you agree with Hamilton that the debt should be paid off? Why or why not?

7. Settling the Debt States’ Debt
Why did he want to do this?????
States could focus on developing businesses and trade

8. Settling the Debt States’ Debt
The South did not like this plan.
Because they didn’t have much debt
Hamilton needs to get the southern states on board to his idea.

9. Time Out
Cabinet Battle #1

10. Settling the Debt Moving the Capital
Southerners don’t like having the capital in New York City

11. Settling the Debt Moving the Capital
If the South agrees to Hamilton’s debt plan, the capital will be moved.
The South agrees
Capital moves to Philadelphia from
In 1801, it is moved to Washington, D.C.

12. (starts Federalist Party)
Jefferson & Madison
(start Democratic-Republican party )
Hamilton
(starts Federalist Party)
-Weak central government
-Promotes agriculture
-Low tariffs to keep prices low
-strict construction
-Strong central government
-Promotes manufacturing
and business
-High tariffs (protective tariff)
-loose construction

13. Who do you agree with: Hamilton or Jefferson & Madison? Why?
Answer on the back
Who do you agree with: Hamilton or Jefferson & Madison? Why?

14. National Debate Hamilton wants to have a National Bank
Government can deposit money
The bank could make loans to the government and businesses
wants to start a national mint
country could make its own money

15. National Debate
The National Bank would have a 20 year charter.

16. National Debate Madison and Jefferson DO NOT like Hamilton’s plan
It gives too much power to the federal government
It’s not in the Constitution

17. Answer on the back
Can the government do something if it isn’t specifically in the Constitution?

18. National Debate
Loose Construction: the federal government can make reasonable actions that are not specifically forbidden in the Constitution
Strict Construction: the federal government should only do what the Constitution specifically says to do

19. I agree with Hamilton! We will have the bank.
National Debate
I agree with Hamilton! We will have the bank.