Though both Alexander Hamilton and Thomas Jefferson served as members of President Washingtons cabinet, the two held very different views on the newly founded U.S. government and the role of the masses in that government. During the 1790s the views of Hamilton and Jefferson would develop into two competing political views and eventually form the basis of the first political parties in the U.S.. They both debated on the economics central government/different political views, and foreign policy. However, I believe Hamilton had better views for America.
Hamilton became secretary of the treasury in 1789. He had a complex financial plan which consisted of five major components: funding at par, assumption of state depts, tarrifs, excise taxes, and an establishment for a national bank. Funding at par would bolster the national credit and urge Congress to pay off the entire national debt. Assumption of State depts would urge Congress to assume the states debts. Excise taxes secured an excise tax on a few domestic items such as whiskey.
The foundation of Hamiltons financial plan was a Bank of the United States. He proposed that Congress establish a national bank to handle the governments financial operations. This measure was opposed by Secretary of State Thomas Jefferson, who did not believe that Congress had the power to establish such an institution. Hamilton wanted the government to encourage manufacturing, and he recommended measures for that purpose. Jefferson opposed such a program because they thought that it would hurt farming interests. Congress partly followed Hamiltons suggestions.
Conflicts between Hamilton and a group led by Jefferson and Madison resulted in the development of the nations first two political parties. Hamilton led the Federalist Party, which favored a strong central government. The Democratic-Republican Party, headed by Jefferson and James Madison, wanted a weak national government and stronger independent state government. Hamilton believed in the constitution. He believed in a strong center government to properly function and that the government should have a large and strong army, just in case they might have to use it to show the power of the government and the nation.
Hamilton was given the task to pay the debt of the nation, which was building up from the War for Independence. He e decided to have excise, and tariff, which were taxes to pay back the the nations debt. Hamilton did not want to pay back the inverters right away (unlike Jefferson). What Hamilton did was put the inverters in a payment plan, paying them back with interest, over a period of time. This plan gave more power to the central government because the government had become an investment for its citizens.
Thomas Jefferson on the other hand had a different view of society. He felt that a lot of power should not be given to the government, but that it should stay with the people. He felt that people did not get what they wanted because of certain laws that were being passed. For example he did not like the passing of the Sedition Act of 1798, and the passing of the excise and tariff. All in all, Hamilton was for a strong central government, unlike Jefferson.
Foreign policy in the 1790s further fomented the emerging political parties. The United States was tied to France by the Franco-American alliance of 1778. George Washington, had addressed this by issuing his Neutrality Proclamation of 1793 where he stated that the United States will stay neutral throughout Frances war against Great Britain. Federalists condemned the French Revolution while Republicans praised its democratic ideals.
The XYZ Affair, in which French minister Talleyrand attempted to bribe three American diplomats produced the opposite affect by putting the Republicans on the defensive from Federalist attacks during the resulting Quasi-War with France. During the administration of John Adams (1796), Federalists passed the Alien and Sedition Acts as a assault on Republican party power. The provisions of these acts not only ran counter to the Constitution but caused Jefferson and Madison to pass the Virginia and Kentucky Resolutions. Alien Acts attacked on pro-Jeffersonian aliens; most aliens, who were welcomed by Jeffersonians, lacked wealth and in addition to that, Federalist didnt want aliens voting in the U.S.. Alien Acts also raised requirements for U.S. citizenship from five years to fourteen years.
Alexander Hamilton and Thomas Jefferson contributed great ideas and actions to the young country. Both had great views, but when it comes to the best, Hamilton takes the gold. He contributed the most and gave the country a great economic foundation. All in all, Hamilton had the best views for America in the 1790s.
