Washington's Precedents, Hamilton vs. Jefferson, Hamilton's Financial Plan, Political Parties

Washington's Precedents, Hamilton vs. Jefferson, Hamilton's Financial Plan, Political Parties

Washington’s Precedents:

  • The Creation of the Cabinet:

    • Washington sent his first cabinet nomination to the Senate on Sept 11 1789

    • The current cabinet had 16 members but Washington’s had 4

    • Washington set the precedent that the cabinet members would act as the advisors to the president

    • Secretary of State: Jefferson

    • Secretary of Defense: Knox

    • Secretary of Treasury: Hamilton

  • The Judiciary Act of 1789:

    • The Judiciary Act established the federal court system

    • It set the number of Supreme court justices and created the office of the attorney general to argue on behalf of the US states in cases before the Supreme Court

    • The act was signed by Washington on Sept 24 1789

    • He appointed the first Supreme Court Chief and Associate Justices and Lower Court Justices

    • Washington set the precedent of the justice system’s structure and the Judicial Branch’s role in it

  • The Jay Treaty:

    • The Jay Treaty was between Britain and the US and attempted to diffuse the tensions between them from the Revolutionary War

    • Washington ratified the document in Aug 1795

    • Washington set the precedent concerning the Constitution’s treaty-making process and his response helped define the executive’s role in shaping public sentiment

  • The Pickney Treaty:

    • The Pickney Treaty was between Spain and the US and its purpose was to establish a friendship between the US and Spain

    • Washington appointed Thomas Pickney to negotiate the treaty

    • He set precedents about the involvement of the executive branch in treaty-making

  • Whiskey Rebellion:

    • The Whiskey Rebellion was about whiskey tax imposed by Congress in 1791

    • The rebellion threatened the stability and forced Washington to get involved 

    • He leads militia to stop the rebels

    • This set the precedent that the executive branch has the strength to enforce laws and deal decisively about uprisings, unlike what happened in Shay’s Rebellion

Hamilton vs Jefferson:

  • Nature of Human Beings:

    • Hamilton:

      • Viewed the nature of human beings in a negative way

      • Thought they are selfish and untrustworthy

      • Through that people only cared about their own interests and not the country

    • Jefferson:

      • Strong believer in the abilities of the common man

      • If people were given enough info they are able to make smart decisions

      • Through power in the hand of a few leaders would be dangerous as they might be tempted to govern for their own benefit

  • Best Type of Government:

    • Hamilton:

      • Thought that a small educated group of men would be the best

      • Strong supporter of a strong central gov

      • Feared that if too much power was given to the people then they wouldn’t make decisions on behalf of the country

    • Jefferson:

      • Believed that people could govern themselves

      • The government power should not be concentrated in one central gov but should instead also be spread out among the individual states

      • States should give decision making power to their local gov

      • Favored strong state gov

  • The Constitution:

    • Hamilton:

      • Supporter of the constitution and critic of the AOC

      • Through the Constitution fixed the issues with the AOC by allowing for a strong executive to lead the country and giving power to the central gov

      • Helped write the Federalist Papers and took a lead role in rallying for support of the constitution

    • Jefferson:

      • Feared that one man owls be elected too many times since there were no limits for the president

      • Wanted a Bill of Rights to protect people’s rights

      • Wanted a strict interpretation of the Constitution 

  • Political Party and its Ideas:

    • Hamilton:

      • Debates about whether the Constitution gave too much power to the central gov

      • He thought that a strong federal gov, fewer states rights, and a flexible document is necessary for the country’s survival

      • Become the leader for the Federalist Party

    • Jefferson:

      • Creator/leader of the Republican Party

      • His ideas went against some of Washinton’s administrators

  • Ideal Economy:

    • Hamilton:

      • Believed that there were only a few elite men that are able to lead the country

      • Favored an industrial economy

      • Wanted educated people to lead businesses and to make economic divisions

      • Favored a gov sponsored national bank to lend people money and tie the interests of economic leaders to the central gov

    • Jefferson:

      • Common man should be in the center 

      • A country filled with small independent farms

      • Because people would be self-sufficient, the gov wouldn’t need to have a big role, therefore, limiting their powers

      • The gov’s job would be to keep the country safe and secure from foreign threats

Hamilton’s Financial Plan:

  • Domestic mercantilism (a system of state assisted economic development)

  • Enhance credit

  • Enhance national authority

  • Favored wealthy financiers and merchants and in return they would lend money and support (created a permanent national debt owned mostly by wealthy families)

  • Advocated for a diverse economy based on manufacturing and trade in the US


  1. The government should assume state debts (assumption)

  • To raise money for these debts, new security bonds would be issued which would make investors who bought them a lot of money when the gov pays these debts

  • Having the central gov control debts gives it power over the states which worried people

  • South didn’t have as much debt as the North so they would have to pay for the debt that isn’t theirs

  • North argued that because the debt was for all of their independence, it is all their debt

  1. The government should pay off foreign and domestic debts at face value (redemption)

  • After the war, the US seemed untrustworthy because they didn’t pay debts back

  • Hamilton wanted to pay at face value to gain back that trust

  • Wealthy people would benefit from this

  1. A National Bank

  • Needed to help stabilize the paper currency

  • People feared it would fall under the influence of wealthy spectators from overseas

  • Helps organize delegated powers but debated if it is constitutional or not

  1. Excise taxes on  production, sale, and consumptions of goods, like whiskey and protective tariffs

  • It would protect manufacturers through subsidies and tariffs (tax on imports)


Jefferson opposed this plan because he thought it was too expensive, gave too much power to the central gov, too loose of an interpretation, and was too industrial


Supporters:

  • Federalists

  • Northerners

  • Manufacturers

  • Wealthy people


Opponents:

  • Democratic-Republicans 

  • Southerners

  • Farmers

  • Poor people


Constitutional Issues that Emerged:

  • Hamilton’s Plan was centered around the idea of a strong federal gov and a loose interpretation of the Constitution which brought up debates/issues about whether or not certain aspects were constitutional or whether or not the central gov had the power to do certain things


How does the debate over the Plan connect to Nationalism?

  • Unites the nations through the outcomes of the debates and establishment of the elasticity of the Constitution 

  • Divides the nation through different constitutional issues


Federalists vs Democratic-Republicans:

  • Federalists:

    • Believed in a strong central gov to strop rebellions and protect wealthy people 

    • Thought that the economy should be industrial and focused on manufacturing and trade

    • Wanted a national bank to help build credit 

    • Wealthy aristocrats, merchants, manufacturers, shippers

    • Believed in a loose interpretation of the constitution

    • Supported Hamilton’s Plan

    • Lead by Hamilton

    • Outward and eastward

    • National debt is good for unity

    • Wanted to imitate British aristocracy (rule by rich) but no king

    • Saw common people as unable to govern themselves

    • Willing to censor the press for political power


  • Democratic-Republicans:

    • Wanted a strong state gov

    • Thought that the economy should be based on agriculture

    • Opposed the national bank because it favored the wealthy

    • Middle-class commoners, farmers, laborers, artisans, shopkeepers

    • Believed in a strict interpretation of the constitution

    • Opposed Hamilton’s Plan

    • People inland from the coast

    • Lead by Jefferson

    • National debt is a bad thing

    • Inward and westward

    • Agrarianism - the idea that owning land enabled them to become indepdendent 

    • Wanted more democracy than in the British Parliament

    • Common people are able to govern themselves

    • Reduce government interference by decreasing the number of federal officers

    • Favored freedom of speech and press (as well as other individual rights)



Political Parties:

  • Brings people together

  • Develops policies favorable to their interests or groups that support them

  • organizes/persuades voters to elect candidates

  • Help debates ideas in order to figure out what’s best for the country

  • Help people see multiple sides of the issues

  • Divides people through issues

  • Causes more debates and issues

  • Delays decisions for the country

  • Can cause violence 

  • Political parties emerged when Washington retired

  • In the previous election, Washington won unanimously, but Hamilton’s Plan brought F and DR 

  • This set the precedent of political parties to organize people based on their beliefs and who they support