Unit 5 - Hamilton and National Finances

Wanted to pay off the national debt

Wanted to create a national bank and a mint so the U.S. could have its own currency

Wanted to raise tariffs to protect our new industry and use the money to finance the government

The Southern states did not like the tariff because many of them paid their debts off.

Hamilton agreed to build the new national capital in the South and Maryland and Virginia donated the land.

Jefferson wanted a nation of gentlemen farmers not cities

Jefferson though people would be able to live independently without relying on others to make a living

Was against the tariff because it raised the price of goods the farmers bought from Europe

Hamilton wanted the wealthy to rule the government and Jefferson wanted educated citizens to rule the country

Hamilton saw the bank as necessary to grow the nation and provide money to industry and government

Jefferson saw the bank as something that benefited the elite at the expense of the regular citizen

Jefferson said the Constitution gave no authority to create a national bank (Strict Construction)

Hamilton thought the elastic clause gave him the authority to create the bank (Loose Construction)

In the end Washington agreed with Hamilton and the bank was created with a 20 year charter and was built in Philadelphia

Jefferson resigned as Secretary of State