Transcript 7-2 Hamilton and National Finances

HAMILTON AND NATIONAL FINANCES
TREASURY SECRETARY ALEXANDER HAMILTON DEVELOPED A FINANCIAL PLAN FOR THE NATIONAL GOVERNMENT
KEY TERMS AND KEY PEOPLE
Key Terms
National Debt
Bonds
Key People
Speculators
Alexander Hamilton
Loose Construction
Thomas Jefferson
Strict Construction
Bank of the United States
COMMON BONDS!
 Alexander Hamilton’s Main goal was to pay off the National Debt which totaled $11.7 Million in Foreign Debt
and $40.4 Million in debt owed to citizens
 The United States Governments issued bonds to pay down the debts but could not guarantee the value of the
bonds which led to speculators buying them at lower prices than the value
 Hamilton’s Plan was to gradually repay the FULL value of the Bonds which would allow the speculators to make
a profit
 Thomas Jefferson thought that the bonds favored the rich and opposed them but the government issued new,
FULLY guaranteed Bonds
MOVING DAY
 The United States had a Revolutionary War debt of $21.7 million and Hamilton wanted the National Government
should pay it back
 Taking the debt away from the states would increase business and put money back into the Economy
 The south had already paid back their war debts and thought that it was both unfair and unconstitutional
 In order to gain southern Support Hamilton, Jefferson, and Madison agreed to move the Capital from New York,
to Philadelphia, to Washington DC.
A MUSICAL FIGHT
 Jefferson and Hamilton begin to debate the role of our national Government
 Hamilton wanted a strong central government that made decisions for the people and protected their civil
liberties but Jefferson wanted more decision making power to stay with the average citizen
 Hamilton also wanted to grow the economy by focusing on business manufacturing and high tariffs while
Jefferson wanted to focus on farming and lowering tariffs to lower prices
TAKE IT TO THE BANK
 Hamilton wanted to create a national bank where the government could keep its money and make loans to
governments and businesses
 The bank would have a 20 year charter where congress would be able to extend the bank
 Hamilton Encouraged states to create their own state banks to prevent monopolies with the national bank
 Jefferson and Madison disagreed with Hamilton because the National Bank gave the national government too
much power and was NOT in the constitution
 Hamilton Argued that the constitution had a loose construction and used the ELASTIC CLAUSE to create it
 Jefferson Believed in a strict construction of the constitution and said the ELASTIC CLAUSE should only be used
when its NECESSARY AND PROPER not because it is convenient
 George Washington, and congress, agreed with Hamilton and created the Bank of the United States to make the
economy more stable
THIS HAS BEEN ANOTHER WORLD FAMOUS MR. GREEN POWERPOINT
PRESENTATION!
THIS PRESENTATION WAS A VOCABULARY SANDWICH!!