Hamilton versus Jefferson
...nd wavering delegates in Virginia, the Constitution was ratified on July 26, 1788 (Cincotta, 1994). Upon the ratification, George Washington was chosen as the first president, and was inaugurated as president in New York in April 1789. Washington attempted to remain above party politics and warned that opinionated factions could only serve to ruin national unanimity. Yet it was during his presidency that two competing political philosophies did arise. The emerging political parties revolved around two members of Washington’s cabinet, Secretary of the Treasury Alexander Hamilton and Secretary of State Thomas Jefferson (Riley, 2001). Alexander Hamilton was a Federalist, who believed that a strong federal government was vital to the survival of the new America’s, a view with which Washington agreed with. Hamilton and the Federalists feared that having a weak government would allow for conflicts between the new states, and invasion by foreign forces. Hamilton believed that the wealthy elites were best suited to govern the people, and that commonplace man as was easily led off track (Elkins, 1993). Thomas Jefferson was an Antifederalist. He and his followers disagreed strongly with Hamilton’s idea of government. The Antifederalists believed that the largest threat to America’s future was the creation of a strong central government. Jefferson pointed out it was a centralized government that led to the American Revolution (Ellis, 1997). According to Jefferson, the best government was a small one. Jefferson believed that political power should reside in the separate states, not in the centralized government of the few. Jefferson was an elite, yet he regarded his fellow elites with mistrust. Unlike Hamilton, Jefferson believed that the elite were likely to follow their own self-interest in government, rather than the national interest (Ellis, 1997). Another major difference between these two factions was their idea of how to build a strong economy. Hamilton and the Federalists believed a government that supported manufacturing and domestic trade was the key to independence and a self-sufficient economy. This government would be an active and strong federal government, thereby reducing the likelihood of internal issues among the states (Riley, 2001). Again, Jefferson and the Antifederalists did not agree. Jefferson felt that the manufacturing industry and the urban societies were too dependent on those around them for their employment and vital necessities, and therefore would be easily swayed by popular political opinions. Rather than placing power in those who were not independent, Jefferson preferred to remain a country with small, independent farmers. In this way, those who were not swayed by popular opinion, and those who were the laborers would remain the decision makers and policy makers. The Antifederalists believe this would be the key to the economic future of America (Ellis, 1997). Hamilton and his supporters strongly believed in big business and large, powerful government. The Federalists sought a strong central government acting in the interests of commerce and industry. Hamilton pointed out that America must have funding for industrial development, commercial activity and government. Many wished to reject the national debt or pay only part of it. Hamilton, however, insisted on full payment and on a plan by which the federal government took over the unpaid debts suffered by the states during the Revolution (Cincotta, 1994). Thus, the centralized government would now control the funding of the individual states. Hamilton also developed an idea for the Bank of the United States, with the right to establish branches in different parts of the country. He also sponsored a national mint. Further, Hamilton and the Federalists were in favor of tariffs. They believed that to develop competition of national industries, there needed to be at least temporary protection of new, upcoming firms. By giving this protection, Hamilton felt that business would be encouraged, and that a group of solid elite who supported the government would be created (Cincotta, 1994). Jefferson, on the other hand, believed that the funding of the states should not come from a centralized government, but rather, from the states themselves. Jefferson advocated a decentralized agrarian republic. He recognized the value of a strong central government in foreign relations, but he did not want it strong in other respects. When Hamilton introduced the idea of the national bank, Jefferson objected. Jefferson argued that the Constitution expressly listed all the powers that the federal government had, and reserved all other powers to the states. He then pointed out that the Constitution did not specify that the federal government had the power to set up and operate banking institutions (Cunningham, 2000). This clash between them led to a new and important explanation of the Constitution. Hamilton contended that because of the mass of required elements in the Constitution, a vast body of powers had to be implied by general clauses. One these clauses authorized Congress to "make all laws which shall be necessary and proper" for carrying out other powers specifically granted (Hamilton, 1788). The Constitution authorized the government to charge and collect taxes, pay debts and borrow money. Since a national bank would help in performing these functions, Congress was entitled, under its implied powers, to create such a bank. Washington and the Congress accepted Hamilton's view. This set an important precedent for an expansive interpretation of the federal government's authority (Cincotta, 1994). The overall difference between Hamilton and Jefferson was their fundamental beliefs about centralized government. Hamilton's aim was an organization that is more efficient. He feared anarchy by the non-elite and thought in terms of order. Jefferson, on the other hand, feared tyranny and overuse of government power. He wanted the power resting in the hands of the people, to avoid an overpowered governmental society (Cincotta, 1994). The United States needed both ...