Hamilton’s Financial Plan. Dealing with Debt & Building the Economy. Economic Problems. National Debt Debt = total amount of money that a government owes to others national and state government needed money so they borrowed from foreign countries and from ordinary citizens
Dealing with Debt & Building the Economy
U.S. must pay back debt to gain the respect of other nations
debts and felt others should do the same
The political economists of Europe have established it as a principle that every state should endeavor to manufacture for itself: and this principle, like many others, we transfer to America…In Europe…Manufacture must…be resorted to of necessity…to support the surplus of their people. But we have an immensity of land…Those who labour in the earth are the chosen people of God…Dependancebegets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition…While we have land to labour then, let us never wish to see our citizens occupied at a work-bench,.. for manufacture, let our work-shops remain in Europe. It is better to carry provisions and materials to workmen there…The loss by the transportation of commodities across the Atlantic will be made up in happiness and permanence of government…
Why does Jefferson disagree with Hamilton?
[Hamilton’s] system flowed from principles adverse to liberty, & was calculated to undermine and demolish the republic, by creating an influence of his department over the members of the legislature…These were no longer the votes then of the representatives of the people, but of deserters from the rights & interests of the people…Thus the object of these plans taken together is to draw all the powers of government into the hands of the general legislature, to establish means for corrupting a sufficient corps in that legislature to divide the honest votes…& to have that corps under the command of the Secretary of the Treasury for the purpose of subverting…the principles of the constitution, which he has so often declared to be a thing of nothing which must be changed.
What could this plan do to the new government?
from NYC to an
Potomac River =
District of Columbia