Question

Inquiry Question: How did the two-party system shape the

early years of the new American Government?
The First Federal Government
JEFFERSON VS. HAMILTON
The New Federal Government was established in 1789,
and George Washington was elected the first president.
His Secretary of the Treasury, Alexander Hamilton,
wanted to develop an economic policy that would
strengthen the national government. He also wanted the
federal government to pay off all war debts (including
state debts), called for a national bank to issue
banknotes and collect taxes, and asked Congress to pass
protective tariffs (tax on imports) to discourage
Americans from buying from foreign countries.
1. What was Alexander Hamilton's role in the government, AND what economic policy
did he want to develop?
2. What was Hamilton's proposal for a national bank, AND why did he think it was
necessary?
3. What were protective tariffs, AND why did Hamilton ask Congress to pass them?
Opposing Parties
Two political parties developed disagreements over the proposals. The Federalists were led by
Hamilton and believed in a strong central government that would promote trade and industry. Most
Federalists were from New England. The Democratic-Republicans, led by Thomas Jefferson and
James Madison, opposed Hamilton's proposals and supported strong state governments. The
Upcountry tended to support Democratic-Republicans, while the Lowcountry supported Federalists.
While South Carolinians were split between these parties, most people in the state supported the
assumption of state debts because so much of the war had been fought in South Carolina, and
therefore the state had more debt. The assumption of state debt would transfer the debt from South
Carolina to the federal government. The Democratic-Republicans finally agreed to assume state debts
after the Federalists agreed to move the nation's capital to Washington, D.C.
4. Who led the Federalists AND what did they believe in?

Answer 1

Alexander Hamilton, as the Secretary of the Treasury, proposed economic policies such as paying off war debts, establishing a national bank, and implementing protective tariffs. The national bank was seen as necessary for a stable financial system, while protective tariffs aimed to support domestic industries and reduce reliance on foreign goods.

Step-by-step explanation:

Alexander Hamilton served as the Secretary of the Treasury in the early American government. He wanted to develop an economic policy that would strengthen the national government. His policy included paying off all war debts, establishing a national bank, and implementing protective tariffs.

Hamilton proposed the creation of a national bank because he believed it would provide a stable financial system for the country. He thought the bank would help regulate the economy, issue banknotes, and collect taxes efficiently.

Protective tariffs are taxes imposed on imported goods to discourage Americans from buying them and to protect domestic industries. Hamilton asked Congress to pass protective tariffs to promote domestic production, support American industries, and reduce reliance on foreign goods.

Learn more about Early American Government