HIST 190 Lecture Notes - Lecture 14: Proclamation Of Neutrality, French Revolution, Strict Constructionism
Document Summary
Ha(cid:373)ilto(cid:374)"s progra(cid:373) sparks (cid:272)o(cid:374)tro(cid:448)ersy a(cid:374)d (cid:272)reatio(cid:374) of politi(cid:272)al parties. Hamilton thinks debt is the glue that holds the country together: public debt is a public blessing. 3 major goals for the program: create financial aristocracy, make states economically dependent on central government, every important economic interest to be able to profit. Government is going to pay foreign debt at full face cost. Ha(cid:373)ilto(cid:374)"s progra(cid:373) is goi(cid:374)g to pay se(cid:272)urity holders, (cid:271)ut for a fra(cid:272)tio(cid:374) Ha(cid:373)ilto(cid:374)"s progra(cid:373) pay spe(cid:272)ulators (cid:894)pri(cid:448)ate party(cid:895) at full fa(cid:272)e (cid:448)alue. To pay the interest, he places taxes on whiskey, tax, wine, etc. Dec. 1790- issues 2nd report for a national bank. National bank- loans to government and individuals, circulating median/official currency and county. Hamilton says bank is constitutional: says built in, is implied powers. Fundamental difference on how to interpret constitution. By 1792 differences between jefferson and hamilton have become an open conflict. Out of said quarrel, the first political parties are coming out.
