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Compare And Contrast The Democrats And The Federalists

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The federalists believed in a national bank while the democratic republicans thought the better solution was many state banks. The federalists party was lead by Alexander Hamilton and the republicans by Thomas jefferson. These were the first political parties in the new country.
The federalists wanted to have a national bank runned by the government. Hamilton came up with the idea of a national bank he believed this would allow the government to deposit money that was raised from taxes into the bank. Hamilton proposed that the United States should create a national bank in order to take care of Revolutionary War debt, create a single national currency, and stimulate the economy. They also believed this to be useful for providing loans for government and businesses. Jefferson interpretation the constitution in a way that meant congress couldn't set up a national bank or it would be unconstitutional, However Hamilton pointed out that the necessary and proper clause, part of Article I of the Constitution, allowed for …show more content…

Hamilton and Jefferson debated many times over what was meant by “necessary and proper.” The democratic- republic didn't like the idea of national banks so they came up with the idea of state banks. Jefferson thought that to much control and power given to the government will lead to tyranny. Jefferson once said "I am not a friend to a very energetic government." this means he didn't want the government to contain so much power for instance, a bank that would control all of nation's money. Jefferson believed that each state would have there own bank. This would allow the states to have more control over currency. They would allow people to deposit their own money, the bank would also create their own currency. Hamilton found a problem in this

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McCulloch v. Maryland In 1791 Congress chartered a bank in order to gain assistance for the government in financial situations. According to Thomas Jefferson this action was unconstitutional. Hamilton said that Congress can and will do all that is necessary and proper and that the use of a “bank is necessary and proper in order to collect taxes, further the nation’s welfare, conduct war, and so on.”

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After the Revolutionary War, most states went into debt because the finance of the Revolutionary War pushed out the taxes three or four times the level to help wage the war. Most American demanded the relief of high taxes and heavy debt. Alexander Hamilton "instituted a plan to get the brand new nation off on the right foot financially." Hamilton believed in debt because in order to establish credit you must have the ability to borrow in the future. Hamilton also wanted to establish a national bank to unify and stabilize currency called the Bank of the United State.

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President Alexander Hamilton's research and economic theories had a significant influence on the formation of the Second National Bank. As the first Secretary of the Treasury under President George Washington, Hamilton played a crucial role in shaping the economic policies of the young nation. Hamilton's economic theories emphasized the importance of a strong central bank in promoting economic development and stability. He believed that a centralized institution could address the challenges faced by the fragmented banking system of the time and provide stable currency and credit facilities for businesses. In his influential "Report on the National Bank" in 1790, Hamilton argued for the establishment of the First Bank of the United States.

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Hamilton's economic plan turning point was on the promotion of manufacturers and commerce. While Hamilton distrusted popular will and believed that the federal government should use considerable power in order to steer a successful course, Jefferson placed his trust in the people as governors (Holmes). Hamilton's plan was to establish a bank like the one in England to maintain public credit; strengthening the states' debts under the federal government, and enacting protective tariffs and governments subsidies to encourage American manufactures. All these measures strengthened the federal governments power at the expense of the states. Jefferson opposed these views from Hamilton he feared that the Bank of the United States represented too much English influence, and argued that the constitution did not give congress the power to establish a bank.

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Both Alexander Hamilton and Thomas Jefferson had different opinions on how the First National Bank of The United States should be set up and if it goes by what is stated in the Constitution, which led to an argument between federalist and antifederalist in 1791. Federalist, Alexander Hamilton, was a strong believer in the development of a strong central government and broad a interpretation of the Constitution. On the other hand anti-federalist, Thomas Jefferson, was convinced that the government should have to undergo a strict interpretation of the Constitution and that the government shouldn't interfere, more than needed to, in the lives of the American people. Hamilton recommended that the government should in fact make the Bank of the

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Thomas Jefferson and the other politicians who agreed with his views (Democratic-Republicans), were inclined to believe that the American Revolution was an act of pure rebellion, only unifying with the other colonies for a common goal of independence. Such a view, if strictly followed, would mean there would have been no reason for the colonies to stay unified, and this scenario would have surely been the end of an established powerful nation. Alexander Hamilton and the Federalists on the other hand, tended toward the view of advancing the current American experiment with a few sacrifices that would cause great turmoil amongst the states but ultimately unify them. One of these great sacrifices would be to establish a national bank in which state debt would become a total sum known as a national debt. His view was that unless each state felt indebted and/or dependent toward a federal government, that the union would eventually fall apart, and what made the United States powerful and capable of claiming their own independence would fade away.

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The creation of the first bank in the United States prompted a political debate which started in 1791, and went on in the following years. Hamilton’s plan foresaw a bank provided with special powers and privileges, which gave birth to a wide opposition. Although Hamilton 's idea continues to exist in today’s economic environment, at that time his proposal was met with widespread resistance from individuals such as James Madison and Thomas Jefferson, who considered the creation of a federal bank as unconstitutional. Following to a broad interpretation of the Constitution, Hamilton argued that in order to have an effective bank, Congress should be provided with all the powers required. Jefferson disagreed with Hamilton, and claimed that the establishment of such a bank was not consistent with the powers that the Constitution granted to Congress.

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He especially favored the creation of a national bank. He also wanted the federal government to have the authority to collect taxes. Hamilton, along with John Jay and James Madison, wrote many of The Federalist Papers which were essays that explained why the the states should ratify, or accept, a new

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For example, Madison and other Virginians were concerned about the bank's location since it was located in Philadelphia. This meant that it would interfere with moving the capital. Other people like Hamilton and investors thought that the bank positively impacted the nation since the federal government and nation’s capital markets were more powerful and efficient. All in all, creating a national bank was another major aspect of Hamilton’s economic

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Hamilton interpreted it loosely while Jefferson was strict. This led to an argument about whether the creation of a national bank was constitutional; Hamilton stated it was while Jefferson claimed it wasn’t. Another issue that they clashed

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Hamilton 's monetary course of action for the nation included working up a national bank like that in England to keep up open credit; cementing the states ' commitments under the focal government; and initiating guarded tolls and government enrichments to empower American makes. These measures fortified the administration 's vitality to the hindrance of the states. Jefferson and his political accomplices limited these progressions. Francophile Jefferson expected that the Bank of the United States addressed an inordinate measure of English effect, and he battled that the Constitution did not give Congress the capacity to set up a bank. He didn 't assume that propelling produces was as basic as supporting the authoritatively settled agrarian base.

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The two parties were the Republicans and the Federalists. The Republicans hoped government took a lesser approach to everyday life. Its individualistic perspective includes living in moderation, be tough, don’t spend more than you have to, and be honest. These lofty goals and ambitions were reasonable in the late 1700’s, early 1800’s, however, now most

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Hamilton wanted to create public credit with a treasury system, a national bank, a mint, and increase manufacturing which would help unify the country. On the other hand, there was Jefferson, who opposed a strong central government. He argued that the “wealthy would gain at the expense of ordinary Americans and that Hamilton’s political economy would corrupt the morality of citizens and undermine the social conditions essential to republican government”(Powerpoint). The country would opt for an approach closer to Hamilton’s views. One of the first acts was the National Banking Act.

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The need for a national bank was very much so necessary. Hamilton also convinced president Washington to sign the bank bill by his lengthy report that stated: “This criterion is the end, to which the measure relates as a mean. If the end be clearly comprehended withan any specified powers, collecting taxes and regulating the currency, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the constitution, it may safely be deemed to come with the compass of national authority.”

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Jefferson and the Democratic-Republicans were strict constructionists who believed that if the Constitution didn’t allow something, it was forbidden. Hamilton and the Federalists were loose constructionists who believed that if the Constitution didn’t forbid it, it was allowed. He explained his loose constructionist views in “Hamilton’s Opinion as to the Constitutionality of the Bank of the United States,” saying, “If the end is clearly found within any of the specific powers, and if the law has an obvious relation to the end, and it is not forbidden by any particular provision of the Constitution, it may safely be deemed to come within the compass of the national authority.” The National Bank held money for the nation, funded the government, and put private and public money together for a capital pool. Hamilton liked the National Bank because it loaned money to

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