Chapter 7.docx - Matthew Ho Per 2 Ch.7 Hammering Out a...

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Matthew HoPer. 2Ch.7: Hammering Out a Federal Republic, 1787-1820-Revolution brought the idea that people could have power too-Before, Puritans and French Revolution led to chaos-Federalists didn’t like the republicanism of the French-Some even thought that the government was too much for the ordinaryThe Political Crisis of the 1790s-Federalists split in two-Jefferson: Agricultural with local officials-Hamilton: Strong national government and manufacturingThe Federalists Implement the Constitution-Voters now allowed to pick national leaders-Federalists won in 1788-John Adams: Vice PresidentDevising the New Government-Used many practices of the Confederation-Departments of State (Jefferson), Finance(Hamilton), and War(Knox) created-Judiciary Act put a federal district court in each state-Also stated that cases that had federal laws could be appealed to Supreme Court-This allowed federal judges to have final sayThe Bill of Rights-Madison created 19 amendments-Ten approved, known as the Bill of Rights-Protected personal rights like freedom of speech, religion, mandating of legal proceduresHamilton’s Financial Program-Hamilton married into Schuyler family-They were landowners near the Hudson River-Hamilton wanted an authoritarian government-Reported to Congress on public credit, on a national bank, and on manufactures -These reports showed government-assisted economic development1
Matthew HoPer. 2Public Credit: Redemption and Assumption-Report on the Public Credit was controversial-Hamilton wanted Congress to cash in the $55 million that was invested by foreigners-He wanted this because it would give good credit to the United States-However, this would provide a lot of profits to speculators, who bought a lot of securities-He proposed to pay investors new securities, which would give America a debt-Henry condemned it because he said it would create a deficit-Hamilton also wanted the nation to take the debts of the states-Some people, like William Duer, bought up a lot of war bonds because he knew of Hamilton’s intentions in advance-Hamilton promised to reimburse states that already paid their taxes-Hamilton persuaded members of Congress from Virginia and Maryland that the capital would be built near the Potomac RiverCreating a National Bank-Bank of the United States would be owned by both private stockholders and the government-Hamilton said that the bank would stabilize the economy-Jefferson had a literal interpretation of Constitution-Hamilton had a loose interpretation Raising Revenue Through Tariffs-Taxes needed for interest on tax-Tax on whiskey: $1 million a year-Imports: $4-5 million-Hamilton only wanted moderate taxes for importsJefferson’s Agrarian Vision-Northern Federalists: Supported Treasury-Southern Federalists: Followed Madison and Jefferson-People who followed Hamilton remained Federalist-Madison and Jefferson's followers became Democratic-Republicans-Jefferson didn’t like the corruption of human society that pulled back society-

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