Why did Thomas Jefferson and James oppose Hamilton's economic program?

Answer 1

Assumption, outlined in the Report on Public Credit, would make the federal government more powerful. But it was the cornerstone of Hamilton's entire program and Hamilton was willing to give up New York, manipulate Virginia's numbers, and make compromises to get it passed (Compromise of 1790, history's most famous dinner). A national bank, outlined in the Report on the National Bank, had a foundation based on the elastic clause, or the necessary-and-proper clause. Jefferson and Madison thought that not only was a bank not necessary, it would put all the economic power in the cities (which they minded, but Hamilton didn't), and it was a perversion of the Constitution. They were strict constructionists and thought the Constitution should be taken literally. Hamilton, on the other hand, did not. They, Jefferson in particular, wanted the wealth of America to stay in the farmland and agriculture. Both Virginia plantation owners, Hamilton's plan for a diversified manufacturing based economy frightened them. They hated cities, especially Jefferson, and didn't want to see anything there. They thought Hamilton was trying to control the government, plain and simple, and passing his plans wasn't going to help (appeasement). They weren't totally unfounded in their accusations - Hamilton did make the Treasury Department huge, what with the US Mint, the National Bank, the Coast Guard, the Customs Service, and had more clerks working for him than the State and War departments combined. But, of course, Hamilton wasn't. Yet Jefferson and Madison were absolutely terrified of what he could do - he was what people then would call "an intriguer". They thought the economic program was the first step.