hamilton vs jefferson Flashcards
war of words
hamilton was backed by the united states gazette - john fenno
jefferson was backed by the national gazette - philip freneau
summer 1791
in the course of a botanising expedition up the hudson valley, jefferson and madison came to an understanding of hamilton’s political rivals in new york - clinton and burr
led to an informal alliance between the south and new york
1792 election
washington urged by hamilton and jefferson to continue public life, providing invaluable legitimacy to the ‘more perfect union’
received 50 electoral votes to adams’ 75
1793 - jefferson resigns after washington nearly dismisses him - lots of tension
hamilton’s report on public credit
hamilton recommended:
- the funding at face value of the entire domestic and overseas debt incurred by the government of the confederation - $56 million
- federal assumption of the war debts of the states, totalling $21 million
believed national debt would be a powerful cement to the union
opposition to hamilton
madison suggested an alternative plan which discriminated between the original holders and subsequent purchasers
hamilton said it was impossible to judge who might have benefitted from government bonds
southern states had provided for the repayment of their own debts and objected to paying a share of the large debts
compromise
to make generous allowances to states that had already settled most of their debts
the permanent national capital would be in the south at a right on the potomac river to be chosen by washington - washington dc
paying off debt
hamilton’s programme resulted in debt soaring to $80 million
no less than 80% of the federal government’s annual expenditure was needed to service the debt
december 1790 - hamilton issued a second report on public credit which included a proposal for a tax on distilled spirits to raise revenue to cover debts
successful - value of government bonds rose sharply, government could borrow money at home and abroad
madison opposed - would kill the usa
enabling government to raise taxes
bank of the united states would have a capital of $10 million, 1/5th to be subscribed by government, 4/5ths by private investors
it would:
- act as a depository for government funds
- facilitate the collection of taxes
- provide a source of capital for loans to stimulate the development of business and commerce
- issue paper money and curb excessive note issue by state banks
madison insisted that the constitution had not conferred on congress the power to charter companies, so no power existed
successful - contributed to economic development
encouraging manufacturing 1791
report on manufacturing laid down a comprehensive plan for industrialisation through a system of protective tariffs and subsides for new industries and inventions
may wanted an agrarian economy - congress shelved plan but created tariff act in 1792 for revenue rather than protection
whiskey rebellion 1794
western pennsylvania
small farmers of the backcountry distilled and consumed whiskey which was easier to transport and sell than the grain that was it’s source - whiskey was an informal currency
resisted the tax by tarring and feathering federal revenue officers who attempted to collect it
july 1794 - 500 armed men attacked and burned the home of the regional tax inspector after a smaller group had been fended off the previous day
washington issued a congressional authorised proclamation, ordering the rebels to return home and calling for militia from maryland, virginia and new jersey
washington ordered 13,000 troops into the area but the opposition melted away and no battle ensued
many americans such as thomas jefferson were appalled by the overwhelming use of government force which they feared might be the first step to tyranny
