Hamiltonians vs Jeffersonians
Hamilton: Wanted to create a central bank for the United States - Democrats
Jefferson: Believed in Laissez Faire, wanted to leave economy to the people - Republicans
To the Jeffersonians, the central bank would symbolize the elites controlling the government, only giving loans to their friends.
- Farmers and people in the south did not like this as it did not benefit them
- Coddling american businesses, preventing them from being better
To the Hamiltonians, who were mostly bankers in rich cities, wanted to develop manufacturing of textiles and enforce tariffs
- Taxes on imports
- Encourage the development of homegrown products in favor of imports Artificial Inflation of imports in order to get rid of competition
- Farmers needed to import in order to get tools
Government is favoring the north in order to protect manufacturing businesses
- Hurts southern farmers in the process
Aristocracy
America is an Aristocracy based on merit and hard work
- The smartest quickly rise to the top
However, there is concern about factory workers that would slave away all day in filthy factories
- Person who does the work does not receive the money
- majority of citizens
Jeffersonians offered an alternative vision
- Economy not based on manufacturing, based on agriculture
- Middle class farmers that owned land - Yeoman
- Expanding liberty, land owning, security to as many people as possible
- Wealthy would corrupt the government
First Political Parties
| Federalists | Democratic Republicans |
|---|---|
| Manufacturing Economy | Agrarian Economy |
| Pro Tariff | Anti Tariff |
| Pro Britain | Pro France |
| Federal Power | States’ rights |
| Pro Bank of US | Anti Bank of US |
| Loose Interpretation of Constitution | Strict interpretation of Constitution |
| Hamilton | Jefferson |
| Practical - Grow nation | Idealist - Defend freedom |
Washington’s Presidency
Dominated by Foreign Affairs
- Stems from French Revolution that took down the aristocracy
- Seen as a threat to the order of Monarchial Europe
- Starts the French Revolutionary Wars
- America is a key ally of the French
- Jeffersonians: Sympathize with core values of democracy and constitutionalism
- Hamiltonians: America is broke, has no army, no navy, and no funds to support France
- Passes Neutrality Proclamation
- Will not support either side, but secures trade with both nations
- America has ample resources to take advantage of the war
Whiskey Rebellion
Farmers inspired by the French Revolution mounted a rebellion to protest the Whiskey Tax and attacked tax collectors
- Washington raises an army and disperses the rebels
- Shows legitimacy of Washington’s position as President
Haitian Revolution
Wealthy French colony of Saint Domingue is inspired by American Revolution to stage a slave uprising
- Leads to abolition in the colony
Troubles with Britain
Britain and France both try to stop trade to the other as they are both getting supplies from America
- British navy captures American ships
- Impress American sailors Washington sends John Jay to settle the issue, returns with Jay’s Treaty
Jay’s Treaty
- Accepts British rights to stop neutral ships bound for France
- British agreed to give up forts in Northwest
- America is number one trader for Britain
- US had to pay back all pre-war debts to Britain
This pisses off both France and Spain