1. 7X
Objectives: Describe the economic challenges of the new nation and how Hamilton developed a financial plan for the country.
Agenda:
Do Now: Why was it important for the federal government to pay state debts?
Read and take notes on Chapter 7.2
Classwork: page 242 #4

2. Hamilton and National Finances
Economic Problems
Solutions
National debt from the Revolutionary War
Bad bonds- government didn’t have enough money to pay what they’re worth.
States owed $25 million for Revolutionary War expenses.
The South did not want to help repay the debt of other states. And Congress did not have the power to take over state debts.
Many Southerners felt that the northern states had too much power over the government because the capital was in the North.
Pay the foreign debt right away
Pay the bonds gradually, and in full. Eventually issue a new and more reliable type of bonds.
Have the federal government pay 21.5 million of it in order to help the national economy and let people develop business and trade within their states.
Move the capital to Philadelphia for 10 years and eventually move to Washington, D.C. (Maryland and Virginia)

3. Hamilton v Jefferson Jefferson Hamilton
Wanted to protect the power of the States
Believes very much in the people. Have power, education. He thinks people will have patriotism and good sense to ensure liberty.
The people have a right to rule the country, even if they’re not always well-informed.
Did not want to depend too much on manufacturing. Believed farmers are free from influence when they vote and we need to take care of them. Tariffs will make their prices high. We need to keep it low. So no tariffs.
Wanted a stronger central government because he had little faith in the average individual.
Patriotism is the source of errors, and if we want people to serve we have to give them what they want.
Strong central government must balance the masses with the wealthy. Government must protect EVRYONE’s rights.
New forms of economic growth- manufacturing. Higher tariffs to protect American businesses.