Jefferson vs. Hamilton (ch. 2)
The first Congress began meeting in March of 1789 in New York City, and George Washington was inaugurated as the first president the following month. The new government (under the Constitution) was thus up and running, but many problems remained to be addressed. One of the most serious challenges involved the national debt and national finance — both of which had been poorly managed under the Articles of Confederation, due to the government’s inability to raise revenue. Alexander Hamilton, the first Secretary of the Treasury, submitted a plan to Congress in January of 1790 to restore the good credit of the United States by honoring the entire debt, domestic and foreign, at face value. Furthermore, he desired that the federal government “assume” the war debts of the states. Hamilton’s proposal generated serious conflict, and the debate over the issue marked the beginning of the split between Hamilton and James Madison, who had worked together to see the Constitution ratified. Eventually, this rift would help give rise to the Federalist and Republican parties.
This seminal political debate raises several historical questions:
February 12th, 2007 at 3:20 pm
In regards to the first critical thinking question as to why Hamilton wanted to do assume the states debts besides the fact that he is a genius was to have the federal government holding the cards in the respect that though who has the money has the power and if the strong central government (federal government)is the one who has money owed to it then the debtors must listen to the loaner; this is apparent in life situations.
February 12th, 2007 at 8:51 pm
Hamilton was brave in offering up the option of honoring the debt with face value. It was a big step, but something had to be done in order to restore order to the nation’s finances. I can see why Madison, or anyone, would have objected but one has to try and look beyond the near future and see the solution through to understand that it will, and it did, work.
February 12th, 2007 at 9:35 pm
The disagreement over Hamilton’s decision was resolved by moving the nation’s capital to a location on the Potomac River. It seemed like many people in the south did not like the idea of the country taking on a permanent debt. In exchange, it was agreed that the capital would be taken out of the north. I found this chapter interesting because it showed how Hamiliton was not yet satisfied with his duties as Secretary of the Treasury. He also kept sticking his nose in Jefferson’s business, acting like a second Secretary of State.
February 13th, 2007 at 11:34 am
Hamilton’s plan would benefit all American people(in respect that they could excercise their rights constituted) because he explained the positive impact that a properly funded national dept would have on trade, agriculture, manufacturing, and, overall, it would lower the interest of money. Hamilton further explained that together these effects would create even more opportunities for the public well-being. He also addressed the necessity of acquiring an “adequate and stable value” of a public debt by the support of public credit and that without this, none of the above would take place.
November 13th, 2007 at 2:29 pm
hamilton and jefferson both had their point of views. but i believe jefferson was right. its just gonna make the rich, richer and the poor, poorer.