Development of Political Parties

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Development of Political Parties

ISSUE HAMILTON’S VIEW – FEDERALISTS

JEFERSON’S VIEW – REPUBLICANS

FUNDING FOREIGN NATIONAL AND STATE DEBTS

Pay off all debts to establish credit of the new nation

Payments of debt would bind bondholders to the new government

Properly funded bonds would have a stable value and increase the supply of money in circulation Agreed that credit with foreign nations depended upon payment of foreign debts in full.

Protested repayment in full to national bondholders since many bonds had been resold at a fraction of their original worth.

Opposed national government’s assumption of state debts since most Southern states had paid their debts

BANK OF THE UNITED STATES

Favored a national bank modelled on the Bank of England.

Create a standard for national currency.

Give rich investors a chance to make money and establish a tie with the new government.

It would supply necessary capital for business ventures.

Opposed the Bank because it resembled the aristocratic Bank of England and favored the financial interests of the Northeast .

The Constitution did not give Congress explicit power to create a bank.

WHISKEY EXCISE Such a tax would make the West ant-administration in future elections

Expected a revolt form the Western farmers who had largely ignored the Articles of Confederation

National government had to display its power to coerce people into compliance

Opposed a tax which penalized the small farmer and purposely provoked an opportunity to demonstrate the power of the new government at the expense of potential Jefferson supporters

Such a tax would make the West ant-administration in future elections

PROTECTIVE TARIFF Favored a tax that would promote manufacturing and self-sufficiency

Recognized need to protect infant industries during the early industrial revolution

Opposed a tax to promote industrialization

Accepted the enact of a low tariff for revenue purposes, but opposed a high protective tariff

Reflected this view and those of Many others that farmers were the “chosen people”

RESPONSE TO THE FRENCH REVOLUTION 90% of imports were from Britain and 75% of U.S. exports went to Britain

Favored Britain and admired British culture and values

Bulk of money that went to pay off the national debt came from tariffs on imports from Britain

Economic ties were stronger with Britain than France

Favored the French

Insisted that the French Revolution embodied the same principles for which the American Revolution had been fought

Believe “the liberty of the whole earth” depended on the survival of the French Revolutionary Republic