Transcript First US Government

The First U.S. Government
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©2007 cliff baker
Question 1
• What was Hamilton’s plan to deal with the
debt, and why did he think it would work
(three reasons)?
Hamilton’s Plan
• New US gov pay old gov debt
– Exchange old CC bonds for new US bonds
– Tax on whiskey to pay for bonds
• Plan work b/c:
1. Creds loan more $$ to gov if gov pay debts
• Gov able to raise $$ when need
2. Creds make $$ on new bonds
• R: loan profits out, stim economy
3. Creds support gov to make sure get paid
Washington’s Cabinet
Hamilton
Question 2
• Who opposed the plan, and why (two
reasons)?
Not so fast
• South (Jeff, Madison) oppose – 2 reasons:
1. Plan pays current bond holders
– Speculators bought from poor for cheap
• R: plan unfair to poor sellers
– Favor rich over poor
2. Plan pays states’ debts
– Unfair to states already paid off debts
• b/c states that already paid have to pay
taxes to pay for states that haven’t
Jefferson, Madison
Question 3
• What compromise did the two sides make?
Compromise
• Comp:
– South lets Hamilton plan pass
– South gets new U.S. capital (Wash D.C.)
Our New Capital
Question 4
• What was the result of Hamilton’s plan?
Compromise
• R of plan: creds support new gov
– Creds pump $$ into economy
• R: Econ grows
Question 5
• What was Hamilton’s plan for a national bank
(what 4 things would it do), and who would
own it?
Bank of the United States
• Bank of the United States. Jobs:
1. Store Fed gov $$
2. Print US $$
3. Make loans
4. collect loan payments
• Owned by gov & rich investors
– Gov, investors share profits
1st Bank of United States
Question 7
• Who opposed the Bank, why (two reasons),
and what happened?
Not so fast . . . again
• South (Jeff, Mad) oppose:
1. Gave rich too much control over gov $$
• Favor rich over poor
2. Unconst (strict Constructionist)
– No power under const to create
• R: Cong approves anyway, 20 year charter