Hamilton
Hamilton believed that we should be rid of all of our debts and in order to do so we needed more taxes thus Hamilton came up with the Financial Plan. He believed that if the government taxed the people and the rich backed the government then all of the classes would benefit and we would be out of debt. He used the Tariff Act of 1789 to place a 5% tax on imports brought in from foreign countries and it placed a tonnage tax on the ships that came in. The south hated it because they felt that it favored the north more as farmers had to pay more for foreign goods. He also asked that the federal government would take on paying off the state debts and the South became mad about that because they already payed off their debts and the north didn't have to. This led to the capital being moved from New York to the South on a small piece of land in between Maryland and Virginia.
The national bank was also proposed by Alexander Hamilton. His concept on it was that it didn't say anything in the constitution about a national bank but because of necessary and proper clause he could make one. He designed the national bank so that anyone could use it and it was allowed to open branches everywhere and it would collect interest from loans to make money for the government in order to get us out of debt.
The national bank was also proposed by Alexander Hamilton. His concept on it was that it didn't say anything in the constitution about a national bank but because of necessary and proper clause he could make one. He designed the national bank so that anyone could use it and it was allowed to open branches everywhere and it would collect interest from loans to make money for the government in order to get us out of debt.
Jefferson
Although Jefferson was part of Washington's cabinet, he strongly opposed Hamilton's Financial Plan. He believed that this Financial Plan was totally unconstitutional as it favored the rich wealthy class at the cost of the poor. Jefferson thought that Hamilton's plan would lead to more debt that the country could not get out of and make them reliant on wealthy investors and foreigners. Also, Jefferson opposed the state's assumption of 21 million dollars as it was unfair to the southern states which had already paid off their debts. This in Jefferson's mind favored the North over the South causing much resentment toward Hamilton. One of Jefferson's main oppositions to the new Financial Plan was how speculators were paid off 100% while farmers received only 10 cents on the dollar. Jefferson thought that Hamilton was just trying to help his wealthy speculator friends instead of the country as a whole.
As much as Jefferson hated the Financial Plan, he hated the national bank even more. Jefferson took a very strong stand against the idea of a National Bank for many reasons. The first being it was in the hands of the wealthy and foreign investors instead of the common people. Jefferson felt that the National Bank would harm the common farmer and instead benefit the wealthy investors. Another reason he opposed the National Bank, was that no where in the Constitution did it say the federal government had the power to charter a National Bank. Neither was the National Bank necessary for the running of the Country, causing Jefferson to say it could not fit under the Elastic Clause.
As much as Jefferson hated the Financial Plan, he hated the national bank even more. Jefferson took a very strong stand against the idea of a National Bank for many reasons. The first being it was in the hands of the wealthy and foreign investors instead of the common people. Jefferson felt that the National Bank would harm the common farmer and instead benefit the wealthy investors. Another reason he opposed the National Bank, was that no where in the Constitution did it say the federal government had the power to charter a National Bank. Neither was the National Bank necessary for the running of the Country, causing Jefferson to say it could not fit under the Elastic Clause.