Download a rebellion of French people against their king in 1789.

Chapter 6-2
Hamilton and National Finances
1. Settling the Debt/ National Debt
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2. States’ Debts
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Alexander Hamilton – secretary of
Treasury.
Debt existed from the Revolutionary
War
National Debt – money owed by the
United States.
Bonds – certificates of debt that carry a
promise to buy back the bonds at a
higher price.
Speculators – people who buy items at
low prices in the hope that the value
will rise.
States owed money from the war.
Hamilton felt that paying for states’
debt would help the federal gov’t and
national economy.
South did not agree because they did
not want to pay other states’ debts.
3. Moving the Capital
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Southerners wanted the capital moved
from New York – having it there gave an
advantage to Northern states.
James Madison, Thomas Jefferson and
Hamilton worked to convince
Northerners to move the capital.
Philadelphia became capital in 1791 for
10 years.
Washington chose an area on the
Potomac for the permanent capital that
became Washington D.C.
4. Jefferson Opposes Hamilton
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Hamilton and Jefferson disagreed on
how to define the central authority of
the government.
Hamilton wanted a strong central gov’t
that balanced power between citizens
and the wealthy.
Jefferson didn’t feel like all citizens
were well informed voters.
Disagreed on the economy
Hamilton wanted to promote
manufacturing and business, pass
higher tariffs.
Jefferson didn’t think we should be so
dependent on business.
5. National Debate
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Hamilton wanted a national bank and
each state should have a bank.
Limited each bank to a 20 yr charter
Jefferson and Madison felt that
Hamilton was giving too much power to
fed. Gov’t.
Loose Construction means the federal
government can take reasonable
actions that the constitution does not
specifically forbid.
Jefferson believed in strict construction
Strict construction – people who favor
this, think that the federal government
should do only what the Constitution
says it can do.
Bank of the United States – the
country’s first national bank.
CHAPTER 6-3
CHALLENGES FOR THE NEW NATION
1. REMAINING NEUTRAL
2. The Neutrality Proclamation
 French Revolution –
a rebellion of French
people against their
king in 1789.
 The French were
inspired by the
American Revolution.
 Some Americans
supported the
French; some
supported the British,
while others
remained neutral.
 The Neutrality
Proclamation stated
that the United
States would not
take sides with any
European countries
that were at war.
 Some members of
Congress agreed and
some did not
3. The French Question
4. Jay’s Treaty
 Privateers –
private ships hired
by a country to
attack its
enemies.
 Hamilton was proBritish wanted to
increase trade
with them.
 Jefferson wanted
to back France.
 Hamilton pushed
Jefferson to resign
by interfering
with his job.
 Jay’s Treaty –
settled the
disputes that had
arisen between
the United States
and Great Britain
in the early
1790’s.
 The treaty was
unpopular
because it didn’t
pay back the freed
slaves.
5. PINCKNEY’S TREATY
 PiNckney’s Treaty – settled the
border and trade disputes
with Spain.
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