2. What would the United States budget look like after the war? Current Debt: Total: ________ Monthly: _____ Expenses: 1.) ______________________________ 2.)_______________________________ 3.) _______________________________ 4.) _______________________________ 5.) _______________________________ Income: How would the US get money? 1.) _______________________________ 2.) _______________________________ 3.) _______________________________

3. “Getting money from the states is like preaching to the dead.” Alexander Hamilton: S _ _ r _ t _ _ _ O_ _h_ _ _ e _ s _ r _ Alexander Hamilton: S _ _ r _ t _ _ _ O_ _h_ _ _ e _ s _ r _

4. Hamilton’s plan to reduce the debt focused on 3 things: 1.) Tariffs 2.) Excise Tax 3.) Establish national banking system “How would these 3 lower (or eliminate) the national debt?” Additional “tax” placed on Imported goods Additional “tax” placed on Imported goods Additional “tax” placed on domestic goods Additional “tax” placed on domestic goods Makes foreign goods more expsensive, homemade goods cheper China sells plastic cups in America. They planned to sell each cup for $3 in the US. Now, they must pay an additional $1 tariff on each cup. Therefore, they must now charge $4 per cup. The $1 tariff goes to the government as revenue. Meanwhile, cups made in Ohio do not pay an additional tariff since tariffs are only for foreign goods. China sells plastic cups in America. They planned to sell each cup for $3 in the US. Now, they must pay an additional $1 tariff on each cup. Therefore, they must now charge $4 per cup. The $1 tariff goes to the government as revenue. Meanwhile, cups made in Ohio do not pay an additional tariff since tariffs are only for foreign goods. Same concept as a tariff but applies to only domestic goods. Gives government a place to store money. Allows government to print money. Can issue loans and create revenue from interest.

5. In paragraph 3, it says: The bank was part of the compromise struck by Hamilton and Jefferson that moved the national capital from Philadelphia to the banks of the Potomac.

6. Northern-Southern Compromise the federal government wanted to consolidate all of the state debts into one national debt (Unity? Strong government?) Most southern states already paid off their debts and did not want to help pay for other states (can you blame them?) South accepted the bank, and the national debt, if the capital was moved to the south (from Philadelphia to Washington DC)

7. Why would some people be against the banking system? What does it say in the article about this?

8. There is only ONE way to read… but there are TWO ways to read the Constitution! How to read the Constitution? Strict Interpretation Loose Interpretation -Government can only do what is clearly outlined in the Constitution - Government powers are defined and limited -Government can only do what is clearly outlined in the Constitution - Government powers are defined and limited -Constitution has many “implied” powers -There are powers that exist that aren’t mentioned -Uses the Elastic Clause (Article 1, Sect 8) to justify ideas -Constitution has many “implied” powers -There are powers that exist that aren’t mentioned -Uses the Elastic Clause (Article 1, Sect 8) to justify ideas The Elastic Clause: “Congress can make all laws necessary for the success of the country.” The Elastic Clause: “Congress can make all laws necessary for the success of the country.” The issue is simple: No where in the Constitution does it clearly give Congress the power to create a national bank. How do you think Hamilton reads the Constitution? Why do you think this part was included in the Constitution? The issue is simple: No where in the Constitution does it clearly give Congress the power to create a national bank. How do you think Hamilton reads the Constitution? Why do you think this part was included in the Constitution?

9. True / False 1.) _____ Alexander Hamilton was the first Secretary of Defense. 2.) _____ Hamilton's plan to eliminate the national debt focused on using tariffs and creating a banking system. 3.) _____ A tariff is a tax placed on an export. 4.) _____ Some people opposed the banking system because they believed it violated the Constitution. 5.) _____ The Elastic Clause did not allow the government to make new laws. 6.) _____ If you have a strict interpretation of the Constitution you believe there are strict limits to what the government can or cannot do.