Federalist Challenges in the 1790's

The creation of the first national bank in the United States was of utmost importance in setting precedence for how much power the constitution actually grants the government. The debate over whether to create a national bank raised many questions over the constitution that hadn’t been tested before. It also raised questions about what the government can do when the constitution has no written clause on a certain subject. In looking at the arguments from Alexander Hamilton, James Madison, and Thomas Jefferson regarding a national bank, people can find out more about how some of the leading founders of the Constitution wanted to see the United States government run.

Hamilton created a financial system and national bank that solved the countries debt problem. The Anti-Federalists held the opposite views. They were a diverse coalition of people who opposed ratification of the Constitution. The party mostly consisted of farmers who lived in the south. They objected the new powerful central government, the loss of prestige for the states, and saw the Constitution as a potential danger to personal liberties. They believed that the greatest threat to the future of the United States lay in the government's potential to become corrupt and seize more and more power until its monarch rule completely dominated the people. Jefferson believed that the Federalists’ acted as monocrats (Doc 5). The Anti-Federalists strongly supported state rights, but were opposed to a national bank because they didn’t want a strong central government (Doc 2). Local control was crucial to Antifederalists’ concept of democracy. The differences in political parties and philosophies led to the opposing opinions on government issues. Disagreements between Hamilton’s and Jefferson’s viewpoints involving a national bank, constitution interpretations, and social differences led to the rise of political parties.

Madison hoped it would in time become much more than a parchment fence against repressive actions. The protection of our constitutional rights is greatly strengthened when those rights and the responsibilities that flow from them are written not just on paper, but on the minds and hearts of the citizens. What James Madison will talk about is this matter as well as Patrick Henry who will oppose it can either convince or not convince the council into accepting the ratification as law for a checks and balances.

In the book Hamilton’s Blessing, Gordon uses economic history and theory to explore the start, rise and decline of the United States debt. Gordon opens his book by stating that this country was born in debt, and this debt has become so high that concerned individuals no longer think of it. Throughout the book, he traces the history of the national debt dating back from 1791, when the central bank of the United States was created, up to modern days. The intellectual architect of this creation was Alexander Hamilton, the first Treasury Secretary as well as a central figure who had a deep impact on the economic development of the United States. The title of the book clearly recalls Hamilton's statement that a national debt, "if not excessive,

n the history of the United States, the Anti-federalists were the individuals who opposed the implementation of a central federal government which would seek to oversee different operations in the country along with the ratification of the constitution. Instead, they advocated that power ought to remain within the hands of the local and state governments. Conversely, the Federalists advocated for a stronger government that would oversee the operations of all states. They also wanted the ratification of the existing constitution in order to help the government in managing its debts along with the tensions that were developing in particular states. The Federalist movement was formed by Alexander Hamilton, and it functioned as the first

In the late 1700s, the United States had began to split into two factions: Federalists and Antifederalists. Factions are groups of citizens united by a common interest. The reasoning behind the differing views of how the government works across the world was best said by Locke “Men are equal in a natural sense, but society establishes many dimensions that are unequal”. (Barbour and Wright, 2017). In the states, Federalists wanted a strong central government while anti-federalists wanted a weak one. “The Georgians, for example, wanted a strong central authority to provide military protection for their huge, underpopulated state against the Creek Confederacy; Jerseymen and Connecticuters wanted to escape from economic bondage to New York; the Virginians hoped to establish a system which would give that great state its rightful place in the councils of the republic” (Roche, 800). The one thing they agreed on was having George Washington as president. George Washington tried to be a neutral leader of the United States and suggested for the states to stay together rather than divide into factions. “Thomas Jefferson is credited as stating: “North and South will hang together if they have you to hang on””(Jamison, 2016).

Hamilton was appointed by President George Washington as the first Secretary of the Treasury Department. Hamilton was a Federalist and wanted a strong central government which means it should have more power than the states. Hamilton believed in a loose interpretation of the constitution which means the document allowed everything if it did not forbid. During the French Revolution, Hamilton supported and was an ally of Britain. Hamilton wanted elite rule America. The Federalist Party would be one of the “rich, the able, and the well-born” (Foner, Give Me Liberty, I, 295) as Hamilton stated. Hamilton favored a close relationship with Britain and he wanted America’s economy like Britain where trade and manufacturing were priorities. Hamilton desired to develop the economy and financial stability of the United States, so he established an economic five-program in 1790 and 1791. The first part was to establish the new nation’s credit worthiness which means people

The Federalist Party was mostly made up of well-educated people such as merchants, bankers and manufacturers. According to historian Eric Foner, Hamilton’s “long term goal was to make the United States a major commercial and military power,” Hamilton used Great Britain as a model of economic development, and greatly stressed the importance of government aid in manufacturing, trade, and commerce. As stated by Foner, “Hamilton’s program called for the creation of a Bank of the United States, modeled on the Bank of England, to serve as the nation’s main financial agent.” His plan was to create a private back with the goal of creating a common currency. Lastly, Hamilton and the Federalists distrusted the common people and believed that they were ignorant and incapable of self-rule. Therefore, a strong central

     Alexander Hamilton, the Secretary of Treasury, proposed a plan that the federal government pay both the foreign and domestic debt acquired by the former central government and take over the states' war debts as well. Hamilton was a leader of the Federalists, those who envisioned a strong national government with centralized authority, a complex commercial economy and a proud standing in world affairs. He believed that a financially reliable and responsible government would improve

When the United States declared itself a sovereign nation, the Articles of Confederation were drafted to serve as the nations first Constitution.Under these Articles, the states held most of the power; but due to an almost absent centralized government, colonists were ill-equipped to deal with such practices as regulating trade both between states and internationally, levying taxes, solving inter-state disputes, negotiating with foreign nations, and most importantly enforcing laws under the current notion of "Congress". Realizing that there were several deficiencies in the current system of self-government, the states appointed delegates to ratify the situation and come up with a way to attain the aforementioned practices they needed to

The early years of the Constitution of the United States were full of political strife. The two prominent political ideals were complete opposites. The Jeffersonian Republicans were focused on giving power to the people and maintaining a pastoral economy, while the Federalists supported the control of the government by the elite class, and maintaining “positive” democracy. Both parties feared the influence and effect the other party would have on the public. In Linda K. Kerber's article, “The Fears of the Federalists”, the major concerns Federalists held in the early 19th century are described. Ever since the war with and separation from England, the citizens of America were seen to be continually drive to “patriotic rebellion” as a way to

Hamilton also proposed to pay off the foriegn debt and to issue new bonds to replace the old bonds. One of the most significant things Hamilton did was propose the idea of a national bank that would be funded by the federal government and private investors, and that would also issue money and handle all government funds. During the XYZ affair, the Federalists prefered to fight the French than to pay or negotiate, as the Republican position confirmed. The Federalists also agreed with and helped pass such laws as the Naturalization Act, the Alien Act, and the Sedition Act.

While the anti-Federalists believed the Constitution and formation of a National Government would lead to a monarchy or aristocracy, the Federalists vision of the country supported the belief that a National Government based on the Articles of the Confederation was inadequate to support an ever growing and expanding nation.

There have been many controversies since the United States declared independence in 1776. One of the many domestic issues that divided American citizens was developing the First National Bank in the late 1700s. Hamilton was in favor, while Jefferson opposed and American citizens chose their side based on what they believed what was best for the country. Hamilton proposed a Report on a National Bank in December of 1790 announcing what the National Bank would include. Hamilton’s proposal included, “The bank’s stock would be worth $10,000,000. 20,000 shares would be sold privately at $400 per share ... 5,000 shares or $2,000,000 of bank stock would be bought by the U.S. government. The bank would be run by a 25-man board of directors - 20 chosen by the shareholders and 5 by the government. The bank’s president would be elected by the board of directors. Notes and bills (money) issued by the bank would be redeemable on demand ... and would be accepted by the U.S. government for all payments due. The bank’s charter would run for 20 years and would be subject to renewal by Congress. The bank would be allowed to establish branch offices in other cities; its main branch would be in Philadelphia, the nation’s capital” (http://www.digitalhistory.uh.edu/teachers/lesson_plans/pdfs/unit3_ 4.pdf). Although the first part of the bank bill, establishing a national mint, did pass with ease, supporters and opposers debated the rest of the bill, which included the development of

The argument between Federalists and Anti-Federalists might seem long gone to American citizens, but still their philosophical foundations shape the teams, scope and size of the battlefield. These philosophies go back to two lone men, Alexander Hamilton and Thomas Jefferson. Both fought aggressively for a government based on their ideas, and both did make portions of the now-standing American government. This essay will outline the political, social and economic philosophies of both men, how their philosophies influenced the government today, and a closing opinion.