Alexander Hamilton And Thomas Jefferson

2130 Words5 Pages

A conflict between Alexander Hamilton and Thomas Jefferson took a shape of the United States in the nineteenth century. The Federalists, led by Hamilton, advocated a strong central government could lead the country forward. Their opposition was the Democratic Republicans, led by Jefferson, trusted the common man could make decision for the country and emphasized the importance of decreasing power of the central government and increasing state’s right. Both political parties had good intentions for the future of the United States and had a strong influence on the history, but the Federalist Party was more effective in many ways. On Economics, Jefferson supported yeoman farmers and believed strongly in agriculture being the base of our nation’s income, while Hamilton wanted a balanced economy with agriculture, trade, finance, and manufacturing. In addition, Jefferson did not support government aid on trade, finance, and manufacturing and opposed the establishment of a national bank, while …show more content…

In 1791, Congress chartered the first Bank of the United States. The Bank was given the power to meet the financial needs of the newly formed government. When the Bank’s charter expired in 1811, the Democratic-government refused to renew its charter. Therefore, state bank had a responsibility to make loans and issue money with vast of money in circulation, prices rise rapidly. Without national bank the economy suffered. As a result, the problem to finance the War of 1812 led to a revival of the Bank of the United States. In1816, a second national bank was chartered. National bank got the power to control the nation’s money back. In 1819, in order to drive the Bank out of state Maryland attempted to tax the Bank. In McCulloch v. Maryland, the Court rules that states have no right to interfere with federal institutions. It made federal power stronger and encouraged the national bank to

Open Document