Hamiltonian vs Jeffersonian Democracies

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The two major political parties in early America were the Federalist and Democratic Republican parties. The Federalists, led by Alexander Hamilton, emphasized the importance of a strong central government for the country’s progress. In contrast, Thomas Jefferson’s Democratic Republicans aimed to empower ordinary citizens in governance. While both parties had noble goals for the future of the United States, it was the Federalist Party that excelled in uniting Americans, avoiding internal divisions, and prioritizing national interests.

Hamilton and Jefferson held opposing views, with Hamilton advocating for the few while Jefferson advocated for the many. It is widely recognized that Jefferson’s policies and strategies played a vital role in counteracting Hamilton’s ideas. By prioritizing states’ rights and agricultural pursuits, Jefferson effectively balanced the influence of mercantilists and businesses supported by Hamilton. Nonetheless, without Hamilton’s dissenting perspective, Jefferson’s policies alone could have resulted in a weak and ineffective administration when facing substantial domestic and international challenges.

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Hamilton suggested that Washington publicly declare that the United States would stay out of the war. However, Washington denied Genet’s request and did not declare the 1778 treaty void, as Hamilton recommended. Genet was allowed to carry on with his recruitment campaign, which almost led to Great Britain declaring war on the United States. Washington instructed Genet to go back to France, but Genet pleaded to remain in America out of fear of being executed by guillotine upon return. Washington permitted him to stay.

In response to America’s limited involvement in the wars, British actions escalated. Despite maintaining military outposts in the westernmost territories of the United States, Great Britain refused to withdraw their soldiers. Additionally, British soldiers began forcefully recruiting American civilians and merchant sailors for service in their warships, leading to the seizure of numerous American merchant ships by the British navy. To avoid conflict with Great Britain, Hamilton advised Washington to send Chief Justice John Jay to London in order to negotiate and sign a treaty with the English.

In 1794, Jay departed for England with instructions from Hamilton containing American goals for the diplomatic talks. Hamilton’s instructions emphasized the cessation of British impressments of Americans, the removal of all British forts from American territory, and the complete halt of random seizure of American ships. Although Jay signed a treaty in the autumn of 1794, it failed to meet most of the American goals and thus disappointed Hamilton. Nonetheless, Hamilton urged Washington and the Senate to ratify the treaty, as he felt that without it, war between Great Britain and the United States would be unavoidable.

Hamilton, writing as “Camillus”, produced a set of essays that meticulously defended each aspect of Jay’s Treaty. Through these writings, he succeeded in persuading both the public and the Senate, resulting in the treaty’s ratification. Additionally, Hamilton played a significant role in assisting Washington in crafting his renowned Farewell Address. This address, delivered by Washington in 1796, announced his decision not to seek re-election for a third term as president. Within this address, Washington touched upon various crucial matters. He urged the American people not to allow themselves to be divided by political parties and encouraged them to preserve and uphold their republican values and moral principles.

Additionally, Washington advised the United States to avoid interfering in European matters. Some historians argue that Hamilton was the actual author of many important sections of the speech, although it maintains Washington’s distinct tone. In 1796, Washington retired from public life and Vice-President John Adams became President, much to Hamilton’s disappointment. The French government reacted aggressively to Jay’s Treaty, perceiving it as an alliance between England and America against France. From 1796 to 1800, the French Navy seized or destroyed numerous American vessels and terminated all official diplomatic relations with the United States.

Hamilton asked President Adams to send John Jay to Paris in order to negotiate another treaty with France. Adams agreed, but when the diplomats arrived in France, the French government demanded a bribe of $250,000 before starting any discussions with the American representatives. This demand for a bribe became famously known as the XYZ Affair, named after the three unnamed French diplomats involved. The American public was shocked by this revelation and many people called for military action. While Hamilton did not advocate for war at that time, he did agree that the United States should begin its military preparations.

The main objective of the Federalist Party was to enhance the central government of the United States to prevent failure. Alexander Hamilton emphasized the importance of a strong union in maintaining peace, liberty, and preventing internal conflict and rebellion within states. Hamilton believed that by strengthening the central government, all American citizens would experience freedom as they would be united in their opinions and expressions. Hamilton’s personal experience revealed the disorder caused by conflicting interests and corrupt taxation policies among states under the Articles of Confederation.

Realizing that the survival and growth of the Union relied on the Federal government assuming authority over the nation’s political and economic decision-making, it became evident that swift and definitive resolutions to interstate conflicts were necessary to protect the future of the United States. However, due to the constraints of the Constitution, the Federal government required a rationale to expand its powers.

The Federalists, particularly Hamilton, supported a loose interpretation of the Constitution. They believed that it was necessary for the government to have implied powers in order to promote the welfare of the country. These implied powers allowed the government to take actions that might go beyond or even violate the Constitutional limits of power if they were beneficial for the nation’s interests.

The Democratic Republicans were against one specific action of the Federalists, which was the creation of the Bank of the United States. This bank, inspired by the Bank of England, stored extra money, produced valuable paper currency, and distributed cash to boost American economy. Although the National Bank had numerous advantages for Americans overall, Jefferson and his supporters strongly opposed it. The Democratic Republicans believed that banks should be controlled by individual states in accordance with the 9th Amendment.

Despite past evidence showing that states cannot be relied upon to establish independent banks, Alexander Hamilton believed that a unified national bank was essential to prevent the circulation of conflicting state currencies and the resulting economic turmoil. Hamilton argued that by having all public creditors receive their payments from one source, namely the government, their interests would align, leading to their collective support of the government’s financial arrangements. Thus, Hamilton advocated for the establishment of a single bank for the entire United States to garner the united backing of American creditors.

Hamilton’s belief in the broad interpretation of the constitution was beneficial for the United States as it strengthened the American economy, eliminated domestic conflict, and allowed the Federal government to assert its authority over interstate matters. This approach also facilitated the establishment of a robust banking system, ultimately enhancing the central government’s power, the efficiency of governance, and ensuring the freedoms, securities, and comforts of the American people.

In contrast to the Federalists, the Democratic Republicans believed in empowering the people themselves. Jefferson expressed his trust in “the common sense of mankind in general” and had a lack of trust in the central government. The Democratic Republicans were concerned about the potential tyranny of a strong national government that could operate without any limitations or opposition, without considering the will of the people. However, these concerns were mostly unnecessary, as the Constitution ensured that such an oppressive government could not exist, even with a loose interpretation, due to the checks and balances established by the Founding Fathers.

They ensured that the Federal government would always carry out the desires of the people. Nonetheless, Jefferson refused to make concessions and persisted in spreading his outdated conspiracy theories. Jefferson even went as far as stating, “Every government deteriorates when entrusted solely to the rulers… The people themselves are its only reliable custodians.” Unfortunately, this apprehensive ideology did not benefit the American people; it promoted the emergence of factions, a seeming clash of interests, and limited space for finding common ground.

Jefferson’s flawed philosophy laid the foundation for the future Nullification Crisis. Southern supporters of sectionalism believed that state legislatures had the authority to decide which Federal laws were valid within their states. Numerous influential politicians at that time feared that this crisis would lead to the dissolution of the Union. Consequently, Jefferson’s ideologies fueled tensions between South Carolina and the Federal government. However, Jefferson’s provocative actions did not end there.

He once said “…It is her [England’s] government which is so corrupt, and which has destroyed the nation-it was certainly the most corrupt and unprincipled government on earth.” This statement insulted many Federalists, loyalists, and New Englanders. The Democratic Republicans showed time and time again that they were most adept at causing internal strife rather than solving anything. Clearly Jefferson’s uncompromising and accusatory philosophies only served to divide Americans, amplify interstate conflicts, and damage the strength of the United States.

Both the Federalists and the Democratic Republicans aimed to guide Americans towards a promising future, but it is clear that the Federalist Party was more successful in achieving this objective. Through their forward-thinking and cautious utilization of Federal power to regulate state matters and establish a robust banking system, the Federalists fostered unity among the American people, resolved domestic conflicts, and prioritized the best interests of the United States’ future.

The Federalists firmly believed in safeguarding American freedoms, securities, and comforts, enabling them to cater to the needs of almost every American and ensure the prosperity of the nation. Despite lacking wealth or familial connections to aid his ascent, Hamilton relied on his abilities, ambition, and charm to make his way in the world. During the Revolutionary War, George Washington recognized Hamilton’s talents and appointed him as his aide-de-camp or personal assistant. As the war neared its conclusion, Hamilton improved his circumstances by marrying Elizabeth Schuyler.

Hamilton’s wife came from a prosperous and powerful family in New York. With the help of her politically influential family, Hamilton successfully secured a seat in Congress representing New York after the war. Additionally, he later participated as a delegate from New York at the Constitutional Convention. Hamilton’s understanding of human nature was shaped by his wartime experiences, where he observed people frequently placing their own self-interests and financial gain above loyalty to their country and its necessities.

The majority of Federalists, including Hamilton, held the belief that human nature was inherently self-centered and driven by personal interests. Consequently, they harbored doubts towards any governmental structure that granted excessive power to the “common people” or “the mob”. Hamilton contended that such a system would inevitably lead to “mistakes, confusion, and instability”. From the perspective of the Federalists, an ideal government consisted of the “best people” – individuals who were educated, wealthy, and devoted to serving the public good. They maintained that these individuals possessed the necessary resources, knowledge, and background required for effective governance. John Jay candidly expressed the standpoint that those with ownership and control over the country should also possess governing authority.

Federalists supported a powerful central government and believed in interpreting the Constitution loosely, allowing for flexibility. Their aim was to unite the disputing states and maintain order among the people by utilizing the government’s authority under the Constitution. They considered national power and unity to be of greater significance than the rights of individual states. Hamilton envisioned a prosperous economy as crucial for achieving national greatness. By 1790, the nation’s economy remained primarily reliant on agriculture.

Hamilton aimed to boost the economy and enhance the country’s prosperity by leveraging the federal government’s authority to foster commerce, manufacturing, and trade. In 1790, Hamilton proposed a scheme to Congress aiming to swiftly eliminate all wartime debts. He cautioned that failing to promptly settle these debts would undermine the government’s reputation domestically and internationally. However, Hamilton’s strategy encountered opposition from numerous Americans, particularly those in the South. The Southern states, which had already settled their war debts, saw little rationale for assisting their Northern counterparts in repaying their outstanding obligations.

Hamilton advocated for a significant government role in people’s lives, prioritizing a unified national identity. He aimed to involve the Treasury in the economy’s daily operations and gain control over citizens’ private lives by issuing substantial amounts of debt. Hamilton believed that America’s strength resided in its commerce, specifically focusing on businessmen, entrepreneurs, bankers, and financiers. He emphasized the necessity for the government to assist these individuals in competing globally, a task only achievable by the national government.

Hamilton had suspicions about state governments, which he believed were influenced by narrow local interests. He advocated for a strong federal government that would prioritize trade and commerce (Lodge, 133-142). This approach proved to be beneficial for the United States as it fostered efficiency, regulation, and organization in the country. Hamilton played a significant role in shaping the House of Representatives’ strategy for providing adequate assistance to public credit (Lodge, 133-142). He not only supported economic policies but also promoted effective and successful administration.

In his speech, Hamilton emphasized the importance of acknowledging the United States’ contribution to the growth of industry, trade, business, and government. He stressed the necessity for the nation’s complete trust and support. At that time, there were individuals who advocated for rejecting or only partially paying off the national debt. However, Hamilton firmly advocated for full payment and proposed a plan for the federal government to assume the unpaid debts of the states incurred during the Revolutionary War (Higgins, 78-87).

Hamilton proposed and organized a central Bank of the United States. He argued that because of the required aspects, there needed to be a strong central authority represented by common sections, like Congress, that could create rules and regulations to fulfill various established powers. The American Constitution allowed the central government to impose taxes, collect revenues, and pay debts. A central bank would greatly facilitate the efficient execution of these operations.

According to Hamilton, Congress had the power to establish a central bank and both Congress and Washington endorsed this view. This decision established an important precedent for the authority of the federal government. Hamilton also favored the creation of bank branches across America and the establishment of a national mint. Furthermore, he supported tariffs as a means to protect new businesses and stimulate growth in domestic industries through the “infant industry” concept (Higgins, 78-87).

In providing necessary funds and establishing a solid financial baseline for the central government, these remarkable and triumphant endeavors inspired trust within the business sector. Additionally, they cultivated a highly educated and influential group of professionals who steadfastly supported the American government. Conversely, Alexander Hamilton advocated for a robust federal government to promote trade and quell episodes of civil unrest like the Whiskey Rebellion. Hamilton also believed that a powerful federal government would facilitate the resolution of national issues.

Hamilton supported a loose interpretation of the Constitution, claiming that Congress had the authority to create laws that were necessary and appropriate for fulfilling its responsibilities. He believed that this constitutional justification allowed the Bank of the United States to collect taxes and settle its financial obligations. Furthermore, Hamilton believed that governance should be entrusted to educated individuals, and only property owners should have the right to vote. He also expressed a preference for British influence in the United States due to the significant number of imports from Britain, and he sought to emulate the strength and stature of Britain as a nation.

Hamilton’s vision for America included the development of an industrial economy, as he had a preference for urban growth and the merchant class. He prioritized creating a government that would be fair and effective in ruling the people, rather than focusing on ensuring there would be no tyranny, a concern already addressed by the Bill of Rights. Throughout history, and even currently, there are more pressing matters to consider than tyranny, such as financial matters and foreign affairs.

It is preferable to have a powerful national government rather than a powerful state government. The Articles of Confederation were unsuccessful because they granted excessive power to the states. Is it prudent to repeat that error? Given that a strong state government failed, the clear solution is to have a strong federal government to maintain national unity, otherwise the “United” States would simply be a loose alliance of states connected only by a border. Hamilton was correct in advocating for educated individuals to govern, as they possess knowledge of what is in the best interest of the nation.

A government led by uneducated individuals with no knowledge of governance is undesirable. It is the educated who possess a better understanding of how a government should function and hence can make more informed decisions. Furthermore, the proposition that only property owners should have the right to vote holds merit. As property owners, they are more likely to prioritize wise handling of property taxes, if applicable. Additionally, residing within a particular land, they have firsthand knowledge of the candidates and how their choices will impact their lives.

Choosing Britain as an ally is a more prudent decision than aligning with France due to the frequent trade between Britain and the United States. The United States stands to gain greater benefits from this alliance compared to aligning with France. Additionally, Britain serves as an ideal country for America to emulate, as it would lead America towards becoming a formidable nation. Moreover, an industrial economy would greatly benefit the nation by increasing wealth through foreign trade and providing access to valuable resources that would not have been attainable without trading.

Jefferson’s concept of universal farming is not wise as it disregards the fact that not everyone desires to be a farmer. In conclusion, Hamilton had a superior vision for America as he prioritized the nation’s prosperity and power, and he genuinely sought the welfare of its inhabitants. The disparities between the first political parties are as follows:

  • Federalists
    • Leader: Alexander Hamilton
    • Favored:
      • Rule by the wealthy class
      • Strong federal government
      • Emphasis on manufacturing
      • Loose interpretation of the Constitution
  • Democratic-Republicans
    • Leader: Thomas Jefferson
    • Favored:
      • Rule by the people
      • Strong state governments

Emphasis on agriculture. Strict interpretation of the Constitution. Thomas Jefferson served in Washington’s cabinet as his secretary of state and engaged in policy discussions, both foreign and domestic. This was an opportune platform for him to express his innovative notions about democracy and potentially influence government policies. Little did he know that he would inadvertently shape what is typically regarded as the most significant conflict in American politics. Jefferson, contrasting with Hamilton who embraced the urban lifestyle in New York City, held a preference for rural life and cherished farms.

Jefferson envisioned a government with an authoritative stance on foreign affairs, while being nonintrusive and limited in domestic affairs. He harbored inherent distrust towards anything that threatened individual self-reliance and strongly opposed the idea of Americans relying on their government. For Jefferson, a population dependent on the government would undermine their independence and compromise personal autonomy. Regarding his own biography, Jefferson was born in Virginia into a prosperous and esteemed family.

Jefferson became a Virginia tobacco planter with the land he inherited from his father. Upon establishing himself as a planter, he entered Virginia politics. Although lacking the skill to deliver powerful speeches as a politician, Jefferson’s eloquent writing, such as in the Declaration of Independence and other works, continues to be celebrated and studied. Regarding the view of human nature, Jefferson held a more optimistic perspective compared to Hamilton. He believed that informed citizens had the capability to make wise choices for themselves and their nation. “I have great trust in the intelligence of mankind.”

Jefferson expressed his fearlessness when the French revolution commenced, stating, “that I am never afraid of the issue where reason is left free to exert her force.” He had absolute confidence in the integrity and intelligence of people involved in agricultural work, such as farmers and planters, just like himself. According to him, a problem presented to a ploughman would often be solved better than by a professor. The Democratic-Republicans strongly opposed the Federalists’ belief that only the “best people” should hold power. They saw this perspective as approaching monarchy, or the governance by a king.

Democratic-Republicans held the belief that a minimal government was the most effective. They advocated for a small government with restricted powers, which would allow individuals to fully embrace their freedoms. To maintain a limited national government, they emphasized a strict interpretation of the Constitution. They argued that the Constitution should be understood exactly as written, without any additional powers deemed unconstitutional and risky. Additionally, Jefferson, like many Americans in the 1790s, favored a rural economy.

The writer believed that the future of the nation did not rest with Federalist bankers and merchants, but with plain, Democratic-Republican farmers. He stated, “Those who work the land are God’s chosen people, if ever He had a chosen people.” The Democratic-Republicans favored an economy centered around agriculture and opposed any efforts to support business and manufacturing. Furthermore, despite Thomas Jefferson’s prominence as an individual, he failed to make a significant impact on the nation, causing many Americans to perceive him as lacking purpose.

Jefferson’s intention was not to gain power, but to advance the principles of self-rule as stated in the Declaration of Independence. He acknowledged that the agricultural sector is crucial for the nation’s prosperity. Nonetheless, he realized the necessity for progress and urged farmers to engage in the growing global market.

Jefferson demonstrated trust in the capability of the nation to form strategy and believed that excessive government power would harm the freedom of the American nation. He argued that the weakness of the nation lay with those who prioritized the security of possessions and civil order over the preservation of freedom. Jefferson saw investors, bankers, producers, and pioneers as a threat to American society and strongly opposed the establishment of a central bank, deeming it illegal (Scott, 99-110).

Washington and Hamilton had some fundamental principles in common; both of them were dedicated to building a strong and efficient nation. However, they had contrasting visions for the future of America. Alexander Hamilton’s ideas and policies were highly successful, surpassing Thomas Jefferson’s aspirations. Nevertheless, over time, Hamilton’s original dreams have undergone gradual changes. Despite this, America still maintains a centralized banking system and a national credit system (Scott, 99-110).

Jefferson and Hamilton held opposing views on the American population’s makeup. Jefferson accused Hamilton’s financiers of being exploitative wealthy businessmen who profited from the labor of self-reliant farmers. Jefferson contended that it was not the government’s duty to help these businessmen but rather to prioritize assistance for the exploited farmers. He advocated for decentralizing power to local state governments, reducing federal government intervention, as he believed this would best support the farmers.

Thomas Jefferson held the belief that his disagreement with Hamilton primarily revolved around the issue of governing on behalf of the people. Jefferson had a profound apprehension towards a strong federal government, as he harbored an intense fear of tyranny. He believed that by empowering state governments, individual rights and freedom could be better protected. When it came to establishing and running the new government, Jefferson exercised great caution and insisted on strict adherence to the Constitution. For instance, he opposed the formation of a national bank due to concerns over excessive consolidation of power among wealthy investors and the government.

The claim made is that the creation of a national bank by Congress went against what was allowed by the Constitution. It was argued that amendments 9 and 10 gave power to the states for anything not specifically mentioned in the Constitution. As a result, having a Bank of the United States was seen as unconstitutional because it was believed to contribute to wealth inequality among the rich. Furthermore, there were worries about possible tyranny, so there was support for universal suffrage and giving political power to the public.

Jefferson supported the French, who had aided the US during the Revolution and were working towards a democratic government. He also emphasized the importance of agriculture, believing that a farming lifestyle was superior. His goal was for everyone to be a farmer in order to achieve equality. He worried that an economy based on manufacturing would concentrate power among a few Americans, even suggesting that having a national bank would lead to tyranny.

Differences between the First Political Parties:

Federalists – Leader: Alexander Hamilton – Favored:

• Rule by the wealthy class • Strong federal government • Emphasis on manufacturing • Loose interpretation of the Constitution| Democratic-RepublicansLeader: Thomas JeffersonFavored:Rule by the people • Strong state governments • Emphasis on agriculture • Strict interpretation of the Constitution| Alexander Hamilton, the leader of the Federalist Party, and Thomas Jefferson, the leader of the new Democratic Republicans, had divergent visions for the future of America during their time in George Washington’s cabinet.

Hamilton and Jefferson, leaders of America’s political parties, had differing opinions on various aspects of governance as the country prospered. They held contrasting views on foreign policy, the balance between federal and state governments, and economic policies. Hamilton supported a loose interpretation of the Constitution and advocated for a well-organized central government. He believed that without a strong central authority, chaos would ensue. Hamilton argued that a single powerful government would be more effective in addressing national issues compared to multiple state and local governments which could lead to divisions. On the other hand, Jefferson preferred maintaining the existing system with an emphasis on state and local governments. He was concerned about the potential emergence of another monarchy.

Jefferson’s emergence as a staunch defender of the Constitution stemmed from his thorough analysis of its weaknesses that could allow state laws to supersede federal laws. While his foreign policy ranking was positive in his first term, it turned disastrous in his second term due to the Barbary War. This conflict marked the first time a US president involved American forces in a foreign conflict. The war arose from demands for tribute payments by Barbary pirates, who operated from Tripoli and other North African locations and targeted American merchant ships traveling through the Mediterranean Sea.

During Jefferson’s presidency in 1801, the pirates’ demands escalated, prompting him to demand an end to bribery. As a result, he dispatched US Navy ships and Marines to Tripoli, leading to a successful confrontation with the pirates. This event was a crucial achievement for the US since it served as its initial triumph in overseas operations and made Jefferson recognize the significance of maintaining a well-prepared military force. Consequently, he sanctioned the establishment of the United States Military Academy at West Point. It is noteworthy that France lost the French and Indian War to Great Britain in 1763.

Before the Treaty of Paris of 1763, France gave Louisiana – a territory located west of the Mississippi River and south of the 49th Parallel – to Spain for safe-keeping. France had plans to reclaim this territory from Spain in the future. This arrangement caused concern for Spain, as they feared losing the territory to either Great Britain or the United States. In order to prevent this from happening, Spain would occasionally restrict trade between Great Britain and the United States by closing off access to the Mississippi River. However, President Washington was able to put an end to Spanish interference on the river through Pinckney’s Treaty in 1796.

Napoleon, the emperor of France in 1802, decided to reclaim Louisiana from Spain. Jefferson understood that if France regained control of Louisiana, it would cancel out Pinckney’s Treaty. Consequently, Jefferson sent a diplomatic delegation to Paris to renegotiate the treaty. Meanwhile, a military corps that Napoleon had dispatched to retake New Orleans encountered both disease and revolution in Haiti, leading it to abandon its mission. This turn of events made Napoleon reconsider the value and difficulty of maintaining control over Louisiana. Upon meeting the US delegation, Napoleon’s ministers proposed selling all of Louisiana to the United States for $15 million.

The diplomats contacted Jefferson, but did not have the power to buy the land. They had to wai

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