1301.7c - National Bank and Whiskey Rebellion

The First Bank of the United States and Hamiltonian Economics00:00:00

Alexander Hamilton proposed the creation of a National Bank to handle government finances, issue and regulate currency, store government funds, make loans to businesses, and regulate interest rates. This addressed weaknesses of the Articles of Confederation regarding currency and taxation.

Strict vs. Loose Construction of the Constitution00:07:39

The National Bank sparked a debate over constitutional interpretation. Strict construction argues the government can only do what is explicitly written, while loose construction allows for 'necessary and proper' actions to carry out enumerated powers.

The Hamilton-Reynolds Affair00:02:29

Hamilton was involved in an affair with Maria Reynolds and was blackmailed by her husband, James Reynolds. When the affair was later published by Thomas Jefferson through James Monroe in 1797 to discredit Hamilton, it became the first major political sex scandal in American history.

Formation of Political Parties00:12:03

Political parties began to form around Hamilton and Jefferson. The Federalist Party, centered on Hamilton, favored high tariffs, more taxes, industry, and closer relations with Britain. The Democratic-Republican Party, under Jefferson, favored lower tariffs, fewer taxes, agriculture, and relations with France.

The Election of 1792 and Washington's Presidency00:15:00

George Washington was convinced to run for a second term and won unanimously, setting a precedent for two-term presidencies. Although not officially affiliated with a party, he tended to side with the Federalists, leading to Federalist dominance across the three branches of government.

The Whiskey Rebellion00:16:29

A tax on whiskey led to a revolt in Western Pennsylvania. Washington assembled a volunteer army to enforce the law, demonstrating that the new government could handle internal disturbances, enforce laws, and set a precedent for the executive branch calling for troops to quell domestic uprisings.