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Southern States
Southern states, which were extremely agricultural, had done a good job paying their own debt. They wondered why they should pay taxes to bail out northern states. Many opposed Hamilton's plan in the south.
To justify his ambitions, he explained why he wanted a loose construction, or implied powers. -
Southern States Oppose Hamilton's Plan
Jefferson and Madison appalled critics.They favored a strict construction, or limiting the federal government to powers explicitly granted by the Constitution.They opposed Hamilton's plan for assuming state debts. They argued that the Constitution didn't authorize Congress to charter one. -
Hamilton Compromises
The Compromise of 1790 was the first of three great compromises made by the North and South every thirty years in an attempt to keep the Union together and prevent civil war. The compromise was an early example of executive and legislative cooperation.In Congress, Madison persuaded three congressmen representing districts on the upper Potomac River to switch their votes on assumption. -
Political Divisions Lead to Two parties
The Whiskey Rebellion highlighed the growing divison in American politcs. The federal government, headed by Washington and Hamilton, sought to secure its power and authority. Meanwhile the opposition, led by Madison and Jefferson, grew stronger. -
Hamilton Compromises
In 1791, by a narrow, Congress approved full funding of the federal debt, the implementation of new excise taxes, and the creation of a national bank. -
Congress Approves Funding
Congress approved full funding of the federal debt and the creation of a national bank. in order to get southerners to agree, Hamilton promised in 10 years the national capital would move south. -
Hamilton Compromises
The first president was reelected in 1792, the new capital became known as Washington, district of Columbia. -
Whiskey Rebellion
Southern states were taxed to help pay the Northern States' debt. Farmers resisted the tax by intimidating and attacking tax collectors. -
whiskey rebellion
Many people distilled their grain into whiskey, which was more compact and of higher value.Farmers resisted the tax on Whiskey, so they intimidated and attacked tax collectors. Hamilton used the opportunity to present the Whiskey Rebellion 12,000 militamen marched into the troubled region, yet the rebeelion quickly resolved. -
The Whiskey Rebellion Stirs Debate
The Whiskey Rebellion, and its outcome, fueled disagreement. The Federalists blamed the rebellion in part on a set of political clubs known as the Democratic Societies. The clubs had formed the Federalists. Although these clubs were small and scattered, Washington denounced them as "the most diabolical attempt to destroy the best fabric of human government and happiness." -
Politcial Parties Emerge
The authors of the Constitution wanted to avoid organized polical parties, or groups of people who seek to win elections and hold public office, in order to shape government policy. -
Democratic Republicans
Jefferson and Madison led the Democratic Republicans. This party is also known as the Republicans.Many common people continued to support the Democratic Republicans. They wanted the states to hold more power relative to the federal government. Many voters believed that the Democatic Republicans Party offered more social mobility.
