Hamilton vs. Jefferson

Overview on their beliefs…• Hamilton, being from the

North , backed manufacturing, higher tariffs and business

• Hamilton wanted a strong central government

• Hamilton did not want people to have

much power because he had little faith in the average person

• Jefferson, being from the South , backed farming and lower tariffs

• Jefferson wanted strong powers for the states

• Jefferson believed that the people had the right to rule the country

Hamilton’s Economic Beliefs: Believed in higher tariffs , which would raise the price of foreign products

Jefferson’s Economic Beliefs: Jefferson worried about depending too much on business and believed

that farmers were independent voters

Hamilton wanted to start a national bank where the government could safely deposit its

money; thought the government should also build a national mint (a place to make coins) so

that America could start printing its own money

Jefferson thought Hamilton’s plans for a national bank gave too much power to the federal government

Hamilton responded to Jefferson’s opposition by quoting the elastic clause , which states that

Congress can “make all laws which shall be necessary and proper ” to govern the nation

Hamilton and Jefferson’s Interpretations of the Constitution

• Hamilton believed in a loose construction of the U.S. Constitution (federal government can take reasonable actions that the Constitution does not specially forbid)

• Declared the elastic clause allowed for the creation of a national bank

• Jefferson believed in a strict construction of the U.S. Constitution (only do what the Constitution says – no reading between the lines)

• Thought the elastic clause should only be used in special cases

President Washington and Congress agreed with Hamilton ; Bank of the United States – country’s

1st national bank (1791)