U S History Classwork 2012-2013 Unit 3 p. 1/3 #26
Hamilton’s Economic Plan
Answer the following questions using the power point of the same title.
1. What economic problems did the new United States face?
2. Why was the US in such bad financial shape?
3. What are bonds?
4. Who held these bonds?
5. Why did Alexander Hamilton, the new Secretary of Treasury, believe it was important to pay back the debts that
the government of the US had incurred from the Revolutionary War?
6. According to Hamilton’s Report on the Public Credit, how much did the US government owe to Europe (France
7. How much was owed to American citizens?
8. Who else owed money?
9. What were the four main points of Hamilton’s economic plan?
2012-2013 Unit 3 p. 2/3 #26
10. Besides insuring that the US would have good credit in the future, what else was Hamilton trying to do with his
11. Why did Thomas Jefferson and James Madison oppose Hamilton’s plan?
12. Why was this a problem for the Southern states?
13. What was another underlying issue for the South?
14. What did Hamilton propose that would help win Southern support for congressional passage of his economic
15. Where would this “new” capital city be located?
16. What other ideas did Hamilton propose?
17. What is a tariff?
18. Why did Hamilton support tariffs?
19. Using the illustration of the cooking pots, how much is the cooking pot produced in the United States?
20. Using the same illustration, how much is the cooking pot from Britain?
21. How much would a 25% tariff add to the cost of the cooking pot from Great Britain?
22. According the illustration, how much would the British cooking pot manufacturers have to sell the cooking for with
the 25% tariff put on top of the retail price?
23. So, considering the illustration, which country’s iron cooking pots would you buy?
2012-2013 Unit 3 p. 3/3 #26
24. Record the two types of tariffs and a brief description of each.
25. Which type of tariff did Congress pass into law?
26. What would a national bank do?
27. Why did Jefferson and Madison oppose Hamilton’s National Bank?
28. According to Jefferson and Madison, how should the Constitution be interpreted?
29. Why did they believe a national bank was unconstitutional?
30. How did Hamilton believe the Constitution should be interpreted?
31. Why did Hamilton believe a national bank was constitutional?
32. What did Hamilton use to support his opinion?
33. Whose side did Washington take?
34. What was the result?
35. What did this conflict over the constitutionality of the national bank start?
36. Where would this debate lead?