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Central Governance vs. State Governance 

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Central Governance vs. State Governance 

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Overall, the majority of Alexander Hamilton and Thomas Jefferson’s arguments tend to be based around Hamilton’s “broader” perspective of the US and Jefferson’s more local focused ideology. When making decisions, Hamilton based his choices on how they might affect the US as a whole, or the US’s image on the world stage, while Jefferson worried more about how decisions may affect individual states. Hamilton shows his disdain for the more independently minded proponents of state’s rights in this quote: “An enlightened zeal for the energy and efficiency of government will be stigmatized as the offspring of a temper fond of despotic power and hostile to the principles of liberty,” (Hamilton, Federalist No.1). Here, he decries how those who believe in a strong central government will be accused as anti-freedom by those with a more Jeffersonian view. It’s an argument that has largely continued from their day to ours. National power vs. states rights continues to be a source of great contention between political groups in the US.

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Jefferson was more focused on how too much power in the hands of the federal government could lead to absolutism, and on the other hand Hamilton believed that the federal government needed to be strong. “The mortal diseases under which popular governments have everywhere perished”. This quote supports Jeffersons perspective because it is staying that a democracy rarely works out.

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Jefferson was primarily concerned with one thing- becoming an oppressive monarchy under the British model. However, he failed to consider, in both economic and foreign affairs, that the United States needed the support of British trade and good relations with the country. Hamilton was clear in Federalist No. 9 that his goal was not to emulate the monarchy of Great Britain, but the financial system that created a strong government that could withstand insurrection. "A FIRM Union will be of the utmost moment to the peace and liberty of the States, as a barrier against domestic faction and insurrection" (Hamilton, 1787). Hamilton notes that the American system is not wholly new, but an improvement upon many governments studied by the Founding Fathers, especially the writings of Montesquieu (Federalist No.9, 1787).

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Hamilton was a Federalist that was concerned about America's monetary economy. He was in support of a national bank because it would provide tax money to the federal government, which really needed financial support at the time. Hamilton used the Constitution as a resource for his defense of the Federal government. "The proposed Constitution, so far from implying an abolition of the State governments, makes them constituent parts of the national sovereignty, by allowing them a direct representation in the Senate" (Hamilton, Federalist No.9, 1787). This gives a strong reason for why a National Bank is the smartest for the economy.

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My principle takeaway from the Hamilton Jefferson debates was the financial system that Hamilton wanted to implement. Like Anna said, Hamilton wanted to mirror the financial system of Britain without the government structure. Another notable thing from the debates were the differences in government focus. Hamilton believed in a strong federal government, while Jefferson's focus was on state power and limiting how much power the federal government had. I believe this quote from Hamilton perfectly reinforces the ideas expressed in my response, "The extent, modifications, and objects of the federal authority are mere matters of discretion. So long as the separate organization of the members be not abolished; so long as it exists, by a constitutional necessity, for local purposes; though it should be in perfect subordination to the general authority of the union, it would still be, in fact and in theory, an association of states, or a confederacy." (Hamilton, Federalist No. 9, 1787).

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Hamiltons argument against Jefferson was that he wanted to combine the state and federal government foreign and domestic debts. He believed that we would be running a real nation together. While Jefferson thought that each state should deal with their own debts and not combine them. Hamilton's quote "Nothing can be more evident than that the thirteen States will be able to support a national government better than one half, or one third, or any number less than the whole. " Shows how Hamilton's argument of combining the debts to create a national debt would be more beneficial for everyone. Nothing proves how much it would be better for the nations to support each other compared to having each state pay debts on their own. All states supporting the national government is better than half or less than half supporting. it shows unity.

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Although I was put in the Jeffersonian "team", the argument made by James Madison in his Federalist Paper #10 spoke volumes to me. "...according to the degree of pleasure and pride we feel in being Republicans, ought to be our zeal in cherishing the spirit and supporting the character of Federalists." He was one who believed that the two factions must come together in strength or risk instability. All the states have a common interest and that will be strength. Also, in so far as Alexander Hamilton's economic ideas, a national bank with one currency is a no brainer. The country was named the UNITED States of America, a huge change in the previous CONFEDERATION under the Articles that bared the same name.

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Hamilton was proposing a National Bank at a time the Nation had just ended the revolutionary wars , the economy was on the brink of crashing, and the Nation was troubled with a large debt balance.

Hamilton proposed that the National Bank would help expand the nation economy and provide  for taxes to be collected so the the economy will improve.  Hamilton used the argument that Federalist 12 allowed for commerce to be essential to the economy independence.  Federalist 12 further stated that the national commerce was essential to economic progress.  In addition, Hamilton stated that Federalist 30 stated that the constitution has evidence that says that the federal legislation needs to expand as a Nation at every stage of existence. In order words, if there is a need for the federal government to expand for the betterment of the Nation, then it should be granted the right to expand without being voting down.

Even though Jefferson was a supporter of State government and believed that States should not be subjected to a national tax of any kind and that the National government should not go beyond what was stated in the Constitution, I fully support Hamilton's perspective on the Banking proposal.

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Overall, my main takeaway is that Hamilton wanted to implement a national bank to unify the country under one economy. He proposed that tax dollars would stabilize the economy and give it the immediate pushed it needed. Hamilton also expressed that he admired the British economy because it gave the government a stable foundation; however, he did not respect their style of government. “They have decried all free government as inconsistent with the order of society, and have indulged themselves in malicious exultation over its friends and partisans” (Hamilton, Federalist No.9, 1787). For these reasons Hamilton supported the idea of a national bank which would emulate past economic successes while paving the way for a new style of governing. “Happily for mankind, stupendous fabrics reared on the basis of liberty, which have flourished for ages, have, in a few glorious instances, refuted their gloomy sophisms. And, I trust, America will be the broad and solid foundation of other edifices, not less magnificent, which will be equally permanent monuments of their errors” (Hamilton, Federalist No.9, 1787).

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Jefferson believed in minimal federal government. Jeffersons ideals were based on limited regulation of states leading to prosperity for the people. We can see this mentioned in the Federalist Papers. "There are again two methods of removing the causes of faction: the one, by destroying the liberty which is essential to its existence; the other, by giving to every citizen the same opinions, the same passions, and the same interests."

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According to Jefferson,  "There are again two methods of removing the causes of faction: the one, by destroying the liberty which is essential to its existence; the other, by giving to every citizen the same opinions, the same passions, and the same interests." Jefferson seemed to stick more to the perspective of the common people, as Hamilton believed in the perspective of the whole country.
Jefferson believed that the federal government shouldn't have a lot of power governing people. He goes onto point out the fact that if the government had a strong intervention with its people, it could lead to a monarchy like Hamilton was talking about.
According to Jefferson, Hamilton's plan would leave the whole country in a debt of at least 75 million, which could or hurt the U.S. Jefferson feared as well that creating national banks, would in-turn create a financial monopoly. This could lead to policies being created and implemented that would favor investors and creditors and leave debtors in the dust.
My view is that with the given economy at this point, America would not survive if trade with Britain was ultimately cut off by America. However, if America was able to repair relations with France, they might be able to stimulate the economy so that the country would collapse due to a failing economy.