TCI Lesson 11.3 Alexander Hamilton and the Federalist Party

TCI Lesson 11.3 Alexander Hamilton and the Federalist Party

George Washington's warnings did not stop the rise of political parties in the young nation, however. The Federalist Party appeared first during the debates over the ratification of the Constitution. Its most influential leader was Washington's energetic treasury secretary, Alexander Hamilton.

Personal Background

Hamilton was born in the West Indies and raised on the Caribbean island of St. Croix. When Hamilton was a teenager, he wrote a vivid description of a devastating hurricane that struck the island. The writing impressed all who read it, and a few St. Croix leaders arranged to send the talented teenager to New York, where he could get the education he deserved. Once in America, Hamilton never looked back.

Hamilton's blue eyes were said to turn black when he was angry, but most of the time they sparkled with intelligence and energy.   With no money or family connections to help him rise in the world, he made his way on ability, ambition, and charm.

George Washington spotted Hamilton's talents early in the American Revolution and made the young man his aide-de-camp, or personal assistant. Near the end of the war, Hamilton improved his fortunes by marrying Elizabeth Schuyler, who came from one of New York's richest and most powerful families. With her family's political backing, Hamilton was elected to represent New York in Congress after the war. Later, he served as a delegate from New York to the Constitutional Convention.

Multiple Choice

Who did Alexander Hamilton marry?

• Elizabeth Schuyler

• Maria Reynolds

• John Laurens

• Angelica Schuyler

Multiple Choice

Hamilton was originally from...

• France

• Great Britain

• Spain

• the Caribbean

View of Human Nature

Hamilton's view of human nature was shaped by his wartime experiences. All too often, he had seen people put their own interests and desire for personal profit above the cause of patriotism and the needs of the country. “Every man ought to be supposed a knave [scoundrel],” he concluded, “and to have no other end [goal] in all his actions, but private interest.”

Most Federalists shared Hamilton's view that people were basically selfish and out for themselves, so they distrusted any system of government that gave too much power to “the mob,” or the common people.  Such a system, said Hamilton, could only lead to “error, confusion, and instability. ”

Multiple Choice

How would Hamilton answered the following question?

What is your view of human nature?

• Informed citizens can make decisions for themselves and the country. I have faith in peoples' goodness and wisdom.

• I believe that most people are selfish and out for themselves. A government that gives too much power to the common people cannot be trusted.

Views on Government

 Federalists believed that “the best people”—educated, wealthy, public-spirited men like themselves—should run the country. Such people, they believed, had the time, education, and background to run the country wisely and could also be trusted to make decisions for the general good, not just for themselves. “Those who own the country,” said Federalist John Jay bluntly, “ought to govern it.”

Federalists favored a strong national government and hoped to use the new government's powers under the Constitution to unite the quarreling states and keep order among the people. In their view, the rights of states were not nearly as important as national power and unity.

Hamilton agreed with this sentiment.  Having grown up in the Caribbean, Hamilton had no deep loyalty to any state.  His country was not New York, but the United States of America, and he hoped to see his adopted country become a great and powerful nation.

Multiple Choice

How would Hamilton answered the following question?

Who should lead our country?

• Wealthy, educated, public-spirited men should lead the country.

• Farmers and planters like myself should lead the country.

Multiple Choice

How would Hamilton answered the following question?

How strong should our national government be?

• We should have a strong central government that unities the states and keeps order among the people/

• A national government should be small, with limited powers.

Views on the Economy

Hamilton's dream of national greatness depended on the United States developing a strong economy. In 1790, the nation's economy was still based mainly on agriculture. Hamilton wanted to expand the economy and increase the nation's wealth by using the power of the federal government to promote business, manufacturing, trade, land grants for education, and infrastructure such as canals and roads.

Alexander Hamilton believed that to become strong, the United States needed to develop businesses such as this foundry in Connecticut. A foundry is a factory for melting and shaping metal.

Before this could happen, the new nation needed to begin paying off the huge debts that Congress and the states had  accumulated  during the American Revolution.   In 1790, Hamilton presented Congress with a plan to pay off all war debts as quickly as possible.  If the debts were not promptly paid, he warned, the government would lose respect both at home and abroad.

Hamilton's plan for repaying the debts was opposed by many Americans, especially in the South. Most southern states had already paid their war debts and saw little reason to help states in the North pay off what they still owed.

To save his plan, Hamilton linked it to another issue: the location of the nation's permanent capital. Both northerners and southerners wanted the capital to be located in their section of the country. Hamilton promised to support a location in the South if southerners would support his debt plan. The debt plan was passed, and the nation's new capital—called the District of Columbia—was located in the South, on the Potomac River between Maryland and Virginia.

Next, Hamilton asked Congress to establish a national bank,  which Hamilton believed would help the government by collecting taxes and keeping those funds safe.   It would print paper money backed by the government, giving the nation a stable currency. Most important, the bank would make loans to businesspeople to build new factories and ships.  As business and trade expanded, Hamilton argued, all Americans would be better off.

Multiple Choice

In order to get his financial program through Congress in 1790, Alexander Hamilton made a deal to move the nation's capital from:

• New York to Trenton to Philadelphia

• Philadelphia to Washington DC

• Philadelphia to Annapolis, MD

Once again, Hamilton's proposal ran into heavy opposition.  Where in the Constitution, his opponents asked, was Congress given the power to establish a bank?  In their view, Congress could exercise only those powers specifically listed in the Constitution.

Hamilton, in contrast, supported a loose construction, or broad interpretation, of the Constitution.  He pointed out that the Elastic Clause allowed Congress to “make all laws which shall be necessary and proper” for carrying out its listed powers.  Since collecting taxes was one of those powers, Congress could set up a bank to help the government with tax collection.

After much debate, Hamilton was able get his bank approved by Congress.  Once established, in 1791, the Bank of the United States helped the nation's economy grow and prosper.

Hamilton asked Congress to establish the first national bank. The bank collected taxes, printed money, and made loans to businesses.

Multiple Choice

How would Hamilton answered the following question?

What is the ideal economy?

• The ideal economy is based on agriculture.

• The ideal economy is based on business, manufacturing, and trade.

Multiple Choice

How would Hamilton answered the following question?

Is the establishment of a national bank constitutional? Why or why not?

• Yes, I believe the creation of the national bank is constitutional. I believe in loose construction of the Constitution. The Elastic Clause allows Congress to make any necessary laws, such as the establishment of a bank.

• No. The Constitution says nothing about a national bank and therefore Congress cannot create one. I believe in strict construction of the Constitution. It means what it says and nothing more.

Views on Great Britain and France

When the French Revolution began, Hamilton hoped that it would lead to the “establishment of free and good government.” But as he watched it lead instead to chaos and bloodshed, his enthusiasm for the revolution cooled.

When war broke out between France and England in 1793, most Federalists sided with Great Britain.  Some were merchants and shippers whose business depended on trade with America's former enemy, while others simply felt more comfortable supporting orderly Great Britain against revolutionary France.

Hamilton favored Great Britain for yet another reason.  Great Britain was all that he hoped the United States would become one day:  a powerful and respected nation that could defend itself against any enemy.

Multiple Choice

How would Hamilton answered the following question?

Should the United States ally itself with Great Britain or France? Why?

• We should support France despite the bloodshed caused by the French Revolution. The bloodshed was necessary to pay for freedom.

• In the war between Britain and France, the United States should side with Britain. We should respect Britain's ability to keep order and defend itself. Plus, we depend on trade with them.

Time to Answer Some True or False Questions!!

Multiple Choice

True or False: This a a view that Hamilton held?

America should try and avoid modeling itself after Great Britain.

• True

• False

Multiple Choice

True or False: This a a view that Hamilton held?

Priviledged individuals make the best leaders.

• True

• False

Multiple Choice

True or False: This a a view that Hamilton held?

A stronger central government is needed for stability.

• True

• False

Multiple Choice

True or False: This a a view that Hamilton held?

The people can never have too much power.

• True

• False

Multiple Choice

True or False: This a a view that Hamilton held?

A loose construction of the Constitution makes for the best decision-making.

• True

• False

Multiple Choice

True or False: This a a view that Hamilton held?

Most people are selfish and motivated by self-interest.

• True

• False