Alexander Hamilton's Financial Plan

Good Essays
After being appointed as the Treasury Secretary by President George Washington in 1789, Alexander Hamilton proposed a financial plan which he stated that would help gain the confidence of potential investors, those in the United States and foreigners. Thomas Jefferson and James Madison disagreed with Hamilton’s financial plan, causing there to be a major disagreement on the path the United States should take to become a stronger country economically. As this argument continued, many started to refer Hamilton and his allies as the Federalist. In this paper, I plan on discussing Hamilton’s reason for the financial plan and what were the contents in it, those who disagreed and agreed with it, and how it formed a two party political system. Even before being appointed as Treasury Secretary, Hamilton was unhappy with the weak central government, and supported a strong central government instead. He did not feel that the common person would make the correct decisions for the United States, and wanted there to be a more loose representation of the Constitution. The first recognized proposal in Hamilton’s financial plan was to assume state debt. Due to the Revolutionary war, governments of all levels had some type of debt. Hamilton wanted the government to take responsibility for all existing public debt, …show more content…
One of those people being Thomas Jefferson, who was appointed as the Secretary of State by Washington in 1789. Jefferson’s ideas of how the United States should be ran was complete opposite to Hamilton’s ideas. Jefferson believed in a more weak central government, but strong state governments. He believed in the choices the common person would make, and a more stronger representation of the Constitution. The types of people that agreed with Jefferson were mostly farmers, and those from the South. While bankers, manufactures, wealthy people, and those in New England supported

Related Documents

  • Decent Essays

    He understood that “sometimes good people do bad things and bad people do good things”, this gave Hamilton an advantage because Jefferson did not recognize this. Hamilton wanted to form a national government to help them get out of debt resulting from the American Revolution, he planned to borrow money from European banks then pay it back. He believed our national government had to be strong enough in order to defend ourselves. Jefferson completely disagreed with Hamilton’s ideas of government. Jefferson wanted to accomplish a small, weak government that is not to powerful.…

    • 829 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    In America’s most important document, Patrick Henry and James Madison played two key roles in the development of the Constitution. These two men had different views on how America should be governed. Patrick Henry who was against the new Constitution and sided with the Anti-Federalists. James Madison was the architect of the Constitution and felt a powerful government was needed in order for the colonies to not fall apart. After the Revolutionary War the colonies needed some help with the low imports from Britain since they were cut off from the war and the debt was increasing.…

    • 813 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    State governments will make it too difficult to maintain the national government, they are bias, and Americans should have a firm union in this new nation. Overall, he was completely against state governments. He favored a strong federal government made of many wealthy members. Moreover, Hamilton held a loose interpretation of the Constitution. He even supported sometimes restrictions on speech and press under certain circumstances.…

    • 1205 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    As leaders in their parties, Hamilton and Jefferson only served to encourage the partisan divisions. The two members of Washington’s cabinet had different views on government. From as early as the Constitutional Convention, Hamilton was clearly a Federalist and Jefferson was clearly an Anti-Federalist. These philosophical differences between the two only served as a catalyst for their disputes during Washington’s presidency. Fearing that Hamilton’s economic plans would cause tyranny similar to the British rule, Jefferson created the Democratic-Republican Party to oppose Hamilton’s Federalist Party.…

    • 520 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    The Anti-Federalists

    • 1610 Words
    • 7 Pages

    During the great debate over the ratification of the American Constitution in 1787, two groups, Federalists and Anti-Federalists, were extremely concerned with the safeguarding of liberty. However, these two groups absolutely disagreed whether or not a strong national government would uphold or ultimately annihilate the liberty of the American people. The Federalists supported the Constitution and a stronger national government. The Anti-Federalists, on the other hand, opposed the final ratification of the U.S. Constitution that embraced the creation of a much stronger centralized federal government. The Anti-Federalists preferred a national government that had bestowed the majority of power to the state governments.…

    • 1610 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    “Jefferson’s revolutionary viewpoints soon shaped the beginnings of a profound split in American politics. On one side… Alexander Hamilton… On the other side, centered on Thomas Jefferson…” (The First American Party System: Events, Issues, and Positions). Eventually, Jefferson and Hamilton argued over Hamilton’s financial plans, creating conflicts between Jeffersonians and Hamiltonians. The Jeffersonians were the ones who supported Jefferson and favored a powerful, yet not too powerful central government and a limit on presidency. The Hamiltonians were the people who agreed with Hamilton’s ideas and favored a powerful central government and a strong president.…

    • 870 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Jefferson, an anti-Federalist, opposed the Constitution, arguing that it will destroy the unalienable rights of man. Federalists interpreted the Constitution with a loose construction, meaning that the government should be allowed to exercise many implied powers for the public good (Hamilton). The National Bank, created by Hamilton, was an example of implementing a loose construction because the Constitution did not specifically mentioned whether the government was allowed to do so. The National Bank provided a safe place for people to deposit money and loans for the states and the government to pay off debts. Democratic-Republicans believed that those implied powers belong to the states or to the people to decide whether laws should be made to prohibit something (Jefferson).…

    • 746 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    With respect to the federal Constitution, the Jeffersonian Republicans are usually characterized as strict constructionists who were opposed to the broad constructionism of the Federalists. To what extent was this characterization of the two parties accurate during the presidencies of Jefferson and Madison? As war wages on in Europe, economic and political influence is spreading to America. As the President’s, Jefferson and Madison are challenged by upholding their country’s honor and putting their beliefs into action. However ideas change along with time and the Presidents may have to alter their beliefs to keep the nation stable.…

    • 856 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    With the fight for independence over, members of the newly formed United States sat down to write a set of laws for the nation. However, they were met with growing apprehension from Anti-Federalists, who favored strong state governments as opposed to a powerful central government. This group of commoners was afraid that this new form of government would resort to the monarchist principles of the former British regime, so they called for a protection of individual rights. On the other hand, Federalists were in support of a fortified central government. Both political parties had to reach a compromise in order to get the Constitution ratified, so James Madison drafted the Bill of Rights, or the first ten amendments of the Constitution.…

    • 1282 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Acemoglu and Robinson believed economic success developed from the government became accountable for the citizens, which is due to a central government. I feel as though these two authors take on the position of federalists under the Constitution. They saw that the states having control wasn’t the best option, especially when it came to benefiting the people. Both authors would understand that a decentralized government was causing failure to the nation. I believe they would agree with Madison and Washington very much especially on the points that the Articles of Confederation was a complete failure and that we needed a new system to follow.…

    • 1031 Words
    • 5 Pages
    Decent Essays