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The principal argument about government finance in President Washington's Cabinet occurred primarily between Secretary of the Treasury Alexander Hamilton and Secretary of State Thomas Jefferson. Hamilton advocated for a strong central government and proposed the federal assumption of state debts, along with the establishment of a national bank to stabilize the economy. In contrast, Jefferson favored limited federal power and believed that the states should handle their own debts, arguing that a strong central bank would undermine state sovereignty and lead to tyranny. This debate highlighted the differing visions for America's financial and political future.

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2w ago

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