Sec of Treasury Alexander Hamilton developed a financial program to pay off the debt and develop American manufacturing
Part 1: Report on Public Credit called for the federal gov to pay off the national debt at face value & assume the war debts of the states (Assumption Plan)
Part 2: Hamilton supported 1) high tariffs (tax on imports) and 2) excise taxes (tax on specific item such as whiskey)
Part 3: Created a NATIONAL BANK that would help create a stable, healthy economy, and currency
Huge debate over the Bank of the U.S. & the power of the fed gov. under the new Constitution
Hamilton (Federalist): the "necessary and proper" clause allowed Congress to create the BUS since it waas necessary to carry out its enumerated powers
Federalist | Jeffersonian Republicans |
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Supported Hamilton's economic vision (manufacturing). | Supported Jefferson's economic vision (agrarian society). |
Advocated loose interpretation of the constitution. | Advocated strict interpretation of the constitution. |
Strong central government. | |
Pro England. |
Alien & Sedition Acts (1798) | Kentucky & Virginia Resolutions |
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Reason: Passed by Federalist controlled Congress to limit the political opposition (Democratic-Republicans) | Reason: To oppose federal laws that Democratic-Republicans felt were unconstitutional |
Naturalization Act: increased time from 5 to 14 years for immigrants to become American citizens | Kentucky Resolution (Jefferson) & Virginia Resolution (Madison) said a state could nullify federal laws passed by congress they felt were unconstitutional- Compact Theory: states had made a compact with the national government |
Sedition Act: made it illegal to criticize the government | Argument of nullification will be used by South Carolina in the 1830s and used by Southerners when they secede from the union. |
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