Warm-Up (1/9) 1) Define Precedent – 2) 3).

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Presentation transcript:

Warm-Up (1/9) 1) Define Precedent – 2) 3)

Hamilton and National Finances

99 Problems and Economics is 1… The new government had war debts! It borrowed millions from other countries to pay for the Revolutionary War. It owed citizens and merchants. Debt was more than $52 million. All agreed that debt needed to be repaid to win respect and be thought of as responsible. If not no country would ever loan US money again.

Alexander Hamilton

Hamilton wanted to pay back states’ war debts. The south disagreed since they had already repaid their debt and did not want to pay off the North’s debts! A compromise was made: Southerners would agree to the plan if… the Northerners would agree to place the new capital in the South. The location was Potomac River between Virginia and Maryland.

Enter Washington D.C.

Hamilton’s Financial Plan Hamilton believed in a strong central government and his plan showed this! Hamilton’s Plan: 1. Pay all war debt 2. Raise government revenues 3. Create a national bank 4. Believed manufacturing and industry was the answer!

Which section of the United States did Hamilton’s plan favor? Jefferson disagreed with Hamilton. Why do you think he did? 7

HAMILTON v. JEFFERSON Hamilton’s Political Party: Federalists Jefferson’s Political Party: Democratic-Republican (came from Anti-Federalists) 8

HAMILTON v. JEFFERSON Jefferson believed the PEOPLE, NOT THE GOVERNMENT, are to rule the country Hamilton did not trust the COMMON MAN 9

HAMILTON v. JEFFERSON Hamilton believed in a strong CENTRAL (OR NATIONAL) GOV’T. Jefferson believed in a stronger STATE GOV’T. 10

HAMILTON v. JEFFERSON He wanted agriculture, farming, country Hamilton believed in protective tariffs to encourage American growth He wanted manufacturing, business, cities HAMILTON v. JEFFERSON Jefferson said that protective tariffs hurt southern farmers was against protective tarriffs He wanted agriculture, farming, country 11

HAMILTON v. JEFFERSON For national bank Against national bank He wanted loose interpretation of the Constitution Against national bank He wanted strict interpretation of the Constitution 12

HAMILTON v. JEFFERSON Hamilton wanted to be ALLIES with BRITAIN Jefferson wanted to be ALLIES with FRANCE 13

Jefferson vs Hamilton http://www.youtube.com/watch?v=notJuFGXQ9w&safety_mode=true&persist_safety_mode=1&safe=active

Hamilton or Jefferson quotes