Objective: To analyze the differences between the first political parties. Alexander Hamilton Thomas Jefferson Federalists Democratic - Republicans
Debate over settling the debt Alexander Hamilton Thomas Jefferson Ok with Hamilton’s ideas, but there is a problem: Speculators have bought bonds from citizens for less than they are worth! Now the government is going to buy them from the speculators for full price? That cheats the original owner out of money! Who wins? Hamilton! 1790 Government starts buying bonds back! • Wanted to pay back all bonds sold to citizens over time! • Bonds = certificates purchased that can be turned in for more money in the future • Why did Hamilton want to do this? • Government gains credibility with the people
Wanted to link the wealthy and powerful to the national govt. New govt. should take responsibility for existing Revolutionary War debt. A. National Debt = Certificates (“Funding the Debt”). B. State Debts = “Assumption.” Hamilton’s System would create a permanent national debt (“A blessing, not a curse”). Hamilton’s Financial Plan
Deal with the Opposition • Madison and Jefferson emerge as leaders of opposition to Hamilton’s plans. • Strike deal over dinner to get passage of assumption of state debt in exchange for moving federal capital from Philadelphia to the South (How Washington D.C. is created).
National Bank • Hamilton is in favor for the creation of a national Bank. • Would create national currency and loan money to start factories. • Jefferson is opposed—says it is unconstitutional and would favor rich.
Hamilton Wants New Sources of Income • Western Land Sales were only previous Nat. govt. direct income. • Hamilton proposes 2 new taxes. 1. Tax on distillers of alcohol. 2. Tariff on imports.
Debate over Role of Government CREATE A “T” CHART Hamilton Jefferson Had a lot of faith in the average citizen Said they should govern themselves Said they would educate themselves and do what is right So, government needs to be small Job = stay out of the way • Had little faith in the average citizen • Said they could not be trusted to do the right thing. • Why? • Because the average American does not take education seriously • They take politics even less seriously • So, you need a large government • Job = protect the liberties of all citizens equally
Interpretation of Constitution • Elastic Clause: congress shall “make all laws which shall be necessary and proper” for carrying out the powers listed in the Constitution. • A.K.A. The Necessary and Proper Clause. • Hamilton interprets broadly, means the Federal Govt. can do all kinds of things. • Jefferson interprets narrowly—wants powers of Federal Govt. to be limited.
Hamilton and Jefferson: Differing Views Alexander Hamilton Thomas Jefferson • Favored farmers and rural communities • Favored trade, manufacturing and cities • Believed that the federal government should have more power than the states • Believed that states should have more power than the federal government (state’s rights) • Believed in a loose interpretation of the Constitution • Believed in a strict interpretation of the Constitution • was pro-British • was pro-French
First Political Parties Federalists Democratic Republicans • led by Alexander Hamilton • led by Thomas Jefferson • strong central government led by industry and the wealthy • strong state governments led by the “common man” • emphasis on agriculture “Cultivators of the earth are the most valuable citizens.” – Thomas Jefferson • emphasis on manufacturing, shipping, and trade • loose interpretation of the Constitution • strict interpretation of the Constitution • favored the national bank • opposed the national bank • favored protective tariffs • opposed protective tariffs • pro-British • pro-French
Thomas Jefferson kneels before the altar of Gallic despotism as God and an American eagle attempt to prevent him from destroying the Constitution. Jefferson's alleged attack on George Washington and John Adams in the form of a letter to Philip Mazzei falls from his pocket. Jefferson is supported by Satan, the writings of Thomas Paine, and the French philosophers. The Providential Detection1797-1800.
Am I aFederalistor aRepublican? • Francois Goulet • Farmer from Georgia • 5th grade education • 2. Brandon Smith • Lawyer from Boston, MA • College graduate • 3. John Marshall • Virginia planter • College graduate • Future Chief Justice of the Supreme Court • Believed that the judicial branch was too weak 4. Hans Gruber • German immigrant • Pennsylvania farmer 5. Sally Moore • Mother of five • Employee of a Massachusetts textile mill 6. James Prescott • Banker from Delaware • Member of the Delaware state legislature 7. Mary Worthington • Merchant from South Carolina • Sells mainly European products
Am I aFederalistor aRepublican? • Francois Goulet • Farmer from Georgia • 5th grade education Republican • 2. Brandon Smith • Lawyer from Boston, MA • College graduate Federalist
Am I aFederalistor aRepublican? Federalist • 3. John Marshall • Virginia planter • College graduate • Future Chief Justice of the Supreme Court • Believed that the judicial branch was too weak 4. Hans Gruber • German immigrant • Pennsylvania farmer Republican
Am I aFederalistor aRepublican? 5. Sally Moore • Mother of five • Employee of a Massachusetts textile mill Federalist 6. James Prescott • Banker from Delaware • Member of the Delaware state legislature Republican
Am I aFederalistor aRepublican? 7. Mary Worthington • Merchant from South Carolina • Sells mainly European products Republican
Questions • Describe Hamilton’s vision for the US economy. How does it compare to Jefferson’s? • Discuss Hamilton’s view on whether government power should be at the state or national level. How does this compare to Jefferson’s? • Write and answer: Hamilton’s view on regular people. How does it compare with Jefferson’s view?
Review Questions • What is the national debt? • What are bonds? • What was Hamilton’s idea to fix the economy? • What was Jefferson’s idea for the role of government?