1. Hamilton and Jefferson Face off

2. Birth of Political Parties
Federalists
Democratic-republicans
Led by Alexander Hamilton, John Adams
Wealthy & well-educated should lead nation
Strong central govt.
Emphasis on commerce, manufacturing, shipping & trade
Loose interpretation
Favored national bank
Favored protective tariff
Led by Thomas Jefferson, James Madison
People should have political power
Strong state govts.
Emphasis on agriculture
Pro-French
Strict interpretation
Opposed national bank
Opposed protective tariff

3. What is the most controversial? The BUS!
Hamilton
Jefferson
Anti-BUS- Unconstitutional
Some former federalists oppose, like James Madison
Favored a Strict interpretation of Constitution- no provision for a national bank and Congress had no right to authorize it
Pro BUS- necessary to issue paper money and handle tax receipts and other government funds
Favored a Loose interpretation of Constitution- Article I “necessary and proper” (implied/elastic)

4. To win support for BUS Need Southern support:
Federalists proposed moving capital from Philly to Potomac River
Led to passage of debt assumption bill, BUS, excise tax, protective tariff and creation of the District of Columbia as the new Federal city

5. Who’s my buddy? And where am I?