Domestic Domestic Challenges of Challenges of

the 1790’sthe 1790’s

Hamilton and Economic Policy

Wanted to pay off federal debt State debt would be assumed by fed. gov’t Increase taxes to pay down debt Increased tension between North and South

Industrial v. agrarian (farmers) goals

Federalist v. Antifederalist debate Stronger gov’t v. individual rights

1791 – vote (barely passed) to create national bank, higher taxes, and national capital

Loose v. Strict Construction

Methods of interpreting the Constitution

Loose Implied powers/broader powers for the federal

government

Goal of “general welfare”

Strict Weaker federal government

Not in the Constitution – can’t have it

Whiskey Rebellion Farmers resented excise taxes on whiskey

1794 – farmers in western PA harassed tax collectors

Federal government sent 12,000 troops, resistance melted away

Jefferson argued that Hamilton/Washington over-exaggerated rebellion to demonstrate increase in federal power