Hamilton's Economic Plan and Early American Governance

Vocabulary practice flashcards covering Alexander Hamilton's financial program, constitutional debates, the Whiskey Rebellion, and early legislative compromises.

Economic Crisis of 1789

The most important problem that needed to be addressed when George Washington and Congress took office in 1789.

The Treasury

The executive department responsible for helping the President address the nation's economic crisis.

Alexander Hamilton

The official appointed by President Washington to head the Treasury Department and address the economic woes of the country.

Hamilton's Debt Proposal

The Secretary's first proposal to restore financial credibility by paying off all federal debt.

Reasons for Debt Repayment

Hamilton's two arguments for paying all debt: people and countries would lose faith in the federal government, and not paying debt owed under the Articles would be unconstitutional.

Reasons for Bond Sales Under the Articles

Soldiers, farmers, and merchants sold bonds below face value because they were desperate for money to pay their debts and had little faith in the government.

Speculture

The term used for people who took financial risks by purchasing government bonds at reduced prices.

Face Value Bond Redemption

Hamilton's proposal to pay off bonds at face value, which angered original holders who had already sold their bonds at discounted rates.

Tariff

A tax proposed by Hamilton to help American factories sell more of their goods to American consumers.

Southern Opposition to Tariffs

The South opposed tariffs because it had very few factories, preferred purchasing cheaper foreign goods, and feared European countries.

Whiskey Tax

A tax proposed by Hamilton on whiskey to generate revenue to pay off the federal government's debts.

Sin Tax

A tax placed on goods considered unhealthy for consumers.

Farmers of Western Maryland and Pennsylvania

The regional group, aside from consumers, that opposed the excise tax placed on whiskey.

Stamp Act Riots

Colonial protests leading up to the American Revolution that were similar in nature to the farmers' protests against the whiskey tax.

Commander in Chief

The presidential power exercised for the first time when President Washington sent troops to suppress the farmers' rebellion.

Pardon

The presidential power exercised for the first time in the treatment of captured rebel farmers.

National Bank

An institution proposed by Hamilton to handle the collection of tariffs and regulate currency flow throughout the nation.

Opposition to the National Bank

Arguments raised by Thomas Jefferson asserting that Congress had no delegated power to create a bank/bond and that it would favor northern industrial interests.

Elastic Clause

The constitutional provision cited by Hamilton to justify that the creation of a federal bank was constitutional.

Congress

The legislative body whose approval was required before Hamilton's economic plan could become law.

Quid Pro Quo

A deal in which something is given in exchange for something else.

Capital Relocation Compromise

The agreement orchestrated by Hamilton where northern congressmen agreed to move the capital south in exchange for southern votes on his economic plan.

Log Rolling

The political process of a representative voting for something another representative wants in exchange for a vote they want.