1. Constitutional Interpretations
Strict –
If the Constitution doesn’t specifically assign Congress the power, then the power belongs to the states.
Loose –
Because the Constitution states that Congress has the power to make all laws “necessary and proper” to carry out its duties, then the Constitution doesn’t need to specifically state a power for Congress to make a law.

2. Federalists vs. Democratic-Republicans
Were led by Alexander Hamilton
Believed only the wealthy, elite, and well educated should lead nation
Favored strong national government
Emphasized manufacturing, shipping, and trade
Favored loose interpretation of Constitution
Were pro-British
Favored national bank
Favored protective tariff
Promoted national military
Were led by Thomas Jefferson
Believed all people should have political power
Favored strong state governments
Emphasized agriculture
Favored strict interpretation of Constitution
Were pro-French
Opposed national bank
Opposed protective tariff
Promoted local militia

3. (Democratic-Republican)
Federalists vs. Democratic-Republicans
Issue
Hamilton’s Views
(Federalist)
Jefferson’s Views
(Democratic-Republican)
Manufacturing or farming
Thought the government should encourage manufacturing and trade. Favored cities and merchants.
Thought farmers were the backbone of the nation. Feared manufacturing would concentrate power in the hands of a few wealthy Americans.
Federal or state power
Federal government should have greater power than state governments. A strong federal government would increase commerce and keep the peace.
A small federal government would protect individual freedom. A strong federal government might take over powers the Constitution gave to the states.

4. Federalists vs. Democratic-Republicans
Bank of the United States
It’s purpose was to encourage economic growth
The government deposited money from taxes in the Bank.
The Bank issued paper money to pay the government’s bills and make loans to farmers and businesses.
Tariff, or tax, on foreign goods
The purpose was to make imported goods more expensive than American-made goods
Hamilton and many northerners
wanted a high tariff to protect
American goods from foreign
competition.
Southern farmers opposed a high
tariff.
Congress passed a tariff, but it was
lower than the tariff Hamilton
wanted.