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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