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Ch. 7 Sec. 2 “Hamilton & National Finances” P. 238-242
POWERPOINT NOTES
Ch. 7 Sec. 2 “Hamilton & National Finances” P. 238-242
• Settling the Debt:
• Alexander Hamilton- Sec. of Treasury
• National debt- money owed by the U.S. from Revolutionary War.
• Foreign- $11.7 million
• U.S. Citizens- $40.4 million
• Bonds- certificates od debt that carry a promise to buy back the bonds at a higher price.
• Sold at lower price to speculators who would sell at higher price later.
• Jefferson thought it cheated bondholders.
Ch. 7 Sec. 2 “Hamilton & National Finances” P. 238-242
• Settling the Debt: (Cont.)
• Hamilton wanted to pay off state war debt.
• States would have money to develop business and trade
• South didn’t agree, many had paid debt already.
• Compromise:
• Move capital of nation to South.
• 10 years to Philadelphia, then along Potomac River (D.C.)
Ch. 7 Sec. 2 “Hamilton & National Finances” P. 238-242
Hamilton:
• Strong Central Government
• Promoted Manufacturing/business
• Wanted protective tariffs
• Raise prices of foreign goods.
• Protect U.S. business from foreign competition, buy American.
• Start a National Bank
• National mint, issue money
• 20 year charter, states start own banks
• “Loose” interpretation of Constitution
• Elastic clause gave power for bank
Jefferson:
• Right of people to rule country
• Farming/agriculture
• Low tariffs to keep prices low
• Against the National Bank
• Gave too much power to national gov’t
• “Strict” interpretation of Constitution
• Word for word in Constitution
Ch. 7 Sec. 2 “Hamilton & National Finances” P. 238-242
• A National Bank: (Cont.)
• George Washington supported Hamilton’s Plan.
• Hoped would stabilize the economy
• 1791, Congress enacted the charter for Bank of the U.S.
• 1st National Bank