Government+and+Party+Politics

Government and Party Politics - Section 1: How did debate and the role of government lead to the formation of political parties?


 * Washingtons Federal Government & Hamiltons Economic Plan**

national debt of $52 million from the confederation made it so there was no respect from other countries throughout the world. This debt was compiled through war. In the year of 1789, the electoral college unanimously elected George Washington as the first president of the U.S, John Adams as the first vice president, and about a dozen clerks to fill the administration. (executive branch of government) Besides the clerks and Adams, there was also a few other federal officers. It was important that Washington do his best because he was setting precedents, or acts or statements that become traditions to be followed,and they had to be positive. Now, congress was in charge of organizing the federal court system. The congress passed the Judiciary Act of 1789 and established a system of courts and the office of the attorney general. There would be three circuit courts and one six member supreme court to decide contesting cases. Washington elected John Jay as the first Chief Justice of the Supreme Court. George Washington formed a cabinet (group of federal leaders who headed the major departments of the executive branch and advised the president) and its members included The State Department led by Thomas Jefferson and he dealt with foreign policy, the War Department which supervised national defense, and the Department of Treasury led by Alexander Hamilton and he managed finances. This cabinet was passed by the senate and recognized in 1907 by the law.
 * Building the Federal Government: **

 

-** During George Washington's term as president, there were many economic difficulties that the country had to face. Alexander Hamilton's job at this time was to figure out the most affective way of paying off the immense war debt that the colonies were still faced with. Hamilton's plan involved changing the nations farming economy into a more industrialized, commercial economy. To pay off the war debt that the country faced, Hamilton suggested selling government bonds which would help pay the debt but at the same time give money back to the citizens through interest. Hamilton also proposed new tariffs and excise taxes as another way to raise money for the government. "As to a supposition of repugnancy between the power of taxation in the States and in the Union, it cannot be supported in that sense which would be requisite to work an exclusion of the States" (Alexander Hamilton). His idea entailed bringing each individual states war debt together under the national debt in order to strengthen the national government. He encouraged congress to form a Bank of the United States to help regulate states and to strengthen the national government and at the same time, establish financial credibility for the nation. "The interest of money will be lowered by it; for this is always in a ratio, to the quantity of money, and to the quickness of circulation. This circumstance will enable both the public and individuals to borrow on easier and cheaper terms" (Alexander Hamilton). This is a big part of why Hamilton's plan seemed like such a good idea to some American Citizens, to be able to access and borrow money more easily. Hamilton wanted to gain support from the wealthier people in America in order to help enrich the investors of this plan. In this plan he also intended to split the wealth two different ways; Spread the wealth from the farming areas to more industrial places in the country and also spread wealth from southern states to northern states. The only downfall to Hamilton's plan is that only a small section of northern merchants really benefitted from it. Hamilton suggested taxing the American people, which consisted of mostly farmers, to help pay the debts of the merchants.
 * Hamilton's Plans Stir Debate

"As to a supposition of repugnancy between the power of taxation in the States and in the Union, it cannot be supported in that sense which would be requisite to work an exclusion of the States" -Alexander Hamilton < [|http://press-pubs.uchicago.edu/founders/documents/a1_10_2s6.html]>

"The interest of money will be lowered by it; for this is always in a ratio, to the quantity of money, and to the quickness of circulation. This circumstance will enable both the public and individuals to borrow on easier and cheaper terms." -Alexander Hamilton < [|http://press-pubs.uchicago.edu/founders/documents/a1_8_2s5.html]>

"His vision of a centralized economy provided the basic model for a system that has survived to the present day-- yet in the implementation of his ideas, Hamilton ecountered ferocious attacks against his character and beliefs" < [|http://xroads.virginia.edu/~cap/ham/hampltcs.html]> || //Opposition to Hamiltons plan//**: -the southern states didn't want to support the northern states by paying taxes -Hamiltons loose (interpretation/construction) of the constitution appalled Jefferson, Madison, and others -critics preferred a strict constitution limiting the governments constitutional rights -the north gains power at the expense of the south -Madison thought Hamilton wanted to establish a monarchal government -1791-92 in order to excise taxes in the south they moved the capital to Washington DC -West Pennsylvania mountains, easier to transport whisky through instead of bulky grain -1791 farmers hated excise tax so they attacked the tax collectors instead of paying them -under washingtons command 12000 militia men marched west and resolved the rebellion -jefferson believed government showed to much power over their people -hamilton was a federalist and was opposed by the democratic republicans, such as jefferson

http://fearistyranny.wordpress.com/2009/03/09/jefferson-v-hamilton-federal-powers-and-the-marshall-court/ Britannica volume 3 (pg.660) http://www.classbrain.com/artbiographies/publish/alexander_hamilton.shtml United States History, Prentice Hall

"Some of hamilton's economic policies, especially the creation of the bank of the unites states and excise taxation stimulated the development of organized opposition to the washington administration and led to the formation of what became the republican party of thomas jefferson and james madison." -http://www.answers.com/topic/hamilton-s-economic-policies**

Two Party System**

The founders of America invisioned a country without political parties. Despite their intentions "the U.S. was the first nation to develop parties organized on a national basis and to transfer exeuctive power from one faction to another via an election in 1800" (you dabate.com). Washington believed the party system to be one of the most dangerous american intuitions. He believed that the parties were self serving and try to further there own gain at the expense of the people. "This is why as early as 1796 George Washington spoke out against the party system in his farewell address. Unfortunately, even in this period the party system was in full swing. At the time they may not have referred to themselves as 'political parties'(Instead donning the monikers of Federalists and Anti-Federalists) but these factions still existed, doing their best to gain public support and thereby gain the power of Presidential and Congressional office" ([]).

The Whiskey Rebellion occurred on August 1,1794. That is simply ta taxation on liquor. The stronger the liquor the more tax. The higher the proof of liquor the tax would be between 7 and 18 cents per gallon. The Whiskey Rebellion started when Alexzander Hamilton made an agreement between the states and the federal goverment,that was that the federalist would assume debts of $54 million gained by the states after the revolutionary war.The states agreedof the nations capitol city would be moved south from Philadelphia to/betwwen Maryland and Virgina. Hamilton had to get money to pay off the debt from the war so that is why the Whiskey Rebellion took place. The taxation wasnt good for every one;the (western) farmers were hurt by it because they made whiskey and people didnt want to pay tax.Shockingly they were against the taxation. ( During the Whiskey Rebellion tax collecters were tarred and feathed,as well as shot and beaten. "[] (google-images/whiskey rebellion)