Download Alexander Hamilton – Secretary of Treasury

Alexander Hamilton’s Plan
Chapter 6 Section 1
Objective: Describe Hamilton’s program for dealing with
national debt.
Alexander Hamilton – Secretary of Treasury
When he took over the job, the States owed European Banks,
and Rich Americans
50 Million dollars.
Hamilton’s plan – was to consolidate the states debt into one
large national debt.
Why? So foreign countries and others that had loaned money
would have an interest in the success of the United States.
They would want it to do well, so they could get their loans
repaid.
Hamilton paid back the loans little by little.
To get the money Congress taxed whiskey and placed a tariff on
imported goods.
1791 Hamilton created a National Bank. (Implied Power)
He believed in a loose construction of the Constitution, meaning that
the government could do anything that was specifically not forbidden
in the Constitution.
Jefferson believed in a strict construction of the Constitution, or
that you could only do what the Constitution said you could.
Opponents of Hamilton believed the Federalists were returning
the country to a monarchy and aristocracy.
Americans were also divided over the French Revolution.
Federalists were against it, whereas Jefferson Republicans were in
favor of it, believing it to be an extension of the American
Revolution.
Whiskey Rebellion – People rebelled in Western Pennsylvania to
the tax on whiskey.
President Washington sent troops to shut down the rebellion.
This showed to the world and the country that the US now had
a strong central government, and that the President would
enforce the laws.
Jays Treaty – Americans made a deal with the British in their war
with France. Many Americans were upset saying that it was a sell
out to the hated British. It also did not stop the British from
stopping American ships on the seas.
President Washington stepped down after his second term. He set
this precedent.
John Adams was elected President and Thomas Jefferson
became his Vice.