0
Rate this Study Guide:
☆☆☆☆☆South Carolina threatened to secede in 1833 with the Nullification Act.
Francis Cabot Lowell
John Jay.
[ also the answer for NovaNet. ]
Their views were very different. After consolidating all the US foreign debt, the national debt and the state's debts (largely war costs), Hamilton saw the loans from Europe at 4 % instead of 6% as a breather for a few years while to give a chance for our economy to develop. He had set up a 'sinking fund' which was responsible for paying it off.
Jefferson abhorred a national debt and it was a very high priority to pay it off ASAP. Very noble but then we had no money available to keep our security strong at home and Britain was tempted to take advantage and thus led us to the War of 1812-14. Jefferson did not understand finances.
Jefferson also detested banks, the stock market, and manufacturing. He did not understand the value of their contribution. He denigrated Hamilton and his economic system. His first objective when he became president was to have his Secretary of Treasury, the esteemed Swiss Albert Gallatin, review all Hamilton's systems and root them out of being! After the review was done, Jefferson was told that the system was perfect and if you removed one part it would all fail. Jefferson, Madison, and Monroe all benefited from Hamilton's economic system throughout their 24 years of Presidencies.
The ironic thing is that Jefferson was only able to purchase the Louisiana Territory because of Hamilton's financial credit success. Most of it was obtained through European lenders.
Jefferson wanted to pay off the debt; Hamilton did not
To starve the British and close their factories
The South had fewer large cities than the north.
