Hamilton's Vision

What was Hamilton’s vision for the new United States? What policies did he implement to achieve it? How was Jefferson’s vision different? (204-207)

Following the American Independence in 1783, merely 7 years later, America faced a political crisis that would set the foundation of American politics for generations to come. After the ratification of the Constitution the first president was elected, George Washington. Washington was set to lay the groundwork for the government where he appointed Thomas Jefferson as head of the Department of State, and Alexander Hamilton as the secretary of the treasury. Each of these two characters had vastly different perspective on the future of the United States, as Hamilton pursued to build the U.S into
an economic powerhouse governed by a strong central government and Jefferson looked to create an agrarian nation governed by local government. Hamilton pursued his economically driven U.S by implementing 3 bold plans to establish a public credit, a national bank, and revenue tariffs to compensate for rising national debt, while Jefferson vouched for a country ran by independent yeoman farm families to supply the world of crops and raw materials. George Washington’s most important decision rested in his appointment of the secretary of treasury, he chose Alexander Hamilton, an ambitious self-made man, to solve the arising economic issues the U.S must face from the Revolutionary War and to secure the economic future of the U.S.
Hamilton’s proposed Public Credit system, the plan would build a strong national credit for the U.S that would allow allow the U.S to secure loans from the Dutch and British financiers in the future. However, controversy arose regarding the plan as it would reap huge profits for bond holders both foreign and domestic threatening the liberty of Americans by perpetuating a monied interest, and the architecture of the plan would create a permanent national debt. Furthering the system, Hamilton proposed the assumption of state debts, where the government would allow the redemption of government bonds at state value regardless of their substantially low purchase price. The plan was passed only with a bargain that Hamilton proposed in response to the opposition from the southerners. The bargain promised the national capital to be built along the Potomac River where the southerners can keep watch of the government's operations in the future, this bargain secured the necessary votes to put the plan forth. In 1790, Hamilton proposed to Congress for a jointly owned Bank of the United States by private stockholders and the government. First sight of political division rose as Jefferson vouched for the
strict interpretation of the Constitution and states that nowhere does it state that the government has the power to create a national bank, however Hamilton and Washington prefered the loose interpretation by citing “all Laws which shall be necessary and proper” within the Constitution. In December of 1791, Hamilton proposed the last of his 3 proposals, a plan to pay the annual interest on the national debt through a series of tariffs that balanced inclusiveness of foreign trade and the rising national debt. Hamilton proposed a series of revenue tariffs, but to counter oppositions stating the national tax collectors would threaten the sovereignty of the states, Hamilton appointed respected state officials to customhouse positions. The plan succeeded and steady growth in trade allowed the national debt to be paid down. Hamilton’s financial measures led to the division of the once united federalists into the Hamiltonian Federalists, and the Democratic Republicans.
Jefferson’s views differed substantially from Hamilton’s. As Hamilton went on his quest for economic development and superiority of the U.S, Jefferson always dreamed of a society ran by independent yeoman farm families. Jefferson attracted members of the south as southern society relied heavily on farming as opposed to the industrial north. Jefferson’s perspective may differ from Hamilton’s but that doesn’t mean Jefferson’s perspective was wrong. During the turmoil in Europe with the French Revolution, and the First French Republic’s war against the British-led coalition of monarchies, European farming was heavily disrupted and called for the importation of American crops. In addition, with the invention of the cotton gin, American cotton production skyrocketed as production efficiency increased substantially. This division between Hamiltonian Federalists and Jefferson’s Democratic Republican will lay the foundation of a 2 party dominant political system in the U.S for generations to
come.