7.2 History Quiz

Question 1

Alexander Hamilton

Answer 1

born for economics, became
first Secretary of Treasury.

Wanted to fix national debt: money owed by the
United States

Owed 11 million to foreign, 40.4 to citizens.

Question 2

Bonds

Answer 2

certificates of debt that carry a promise to buy
back the bonds at a higher price. (gov. could not afford to pay back citizens their bonds)

Question 3

Speculators

Answer 3

People who buy items at low prices in
the hope that the value will rise (people sold bonds to them)

Question 4

Hamilton wanted which gov to pay for which debts

Answer 4

fed, state

Question 5

What did fed. paying for state debts do

Answer 5

boost national economy as states can focus on building business and trade (taxes)

Question 6

what did jefferson/the south think about fed paying state debts?

Answer 6

disagreed, did not want to help fed gov to pay debts for other states

Question 7

Patrick Henry:

Answer 7

did not believe constitution had power to pay state debts

Question 8

hamilton bargained:

Answer 8

1. move capital to pennsylvania
2. Jefferson and James Madison (virginians) would convince south to accept state dept plan

Question 9

1791 philadelphia became what

Answer 9

nations second state capital for TEN YEARS while washington chose the site (soon became Washington D.C.

Question 10

Hamilton (central gov)

Answer 10

strong central gov (protect and balance mass of the people and wealthy. prevents people from too much power (the fed)

Question 11

jefferson (central gov.)

Answer 11

weak central gov (he believed in the peoples ability to make state rights)

Question 12

Hamilton (economy)

Answer 12

promoted manufacturing, business, industrialization
- reward companies with gov money and prizes
- pass protective tariffs to encourage the U.S. bought goods

Question 13

Jefferson (economy)

Answer 13

agrarian society (based on small farms)
- focus on farmers
- keep cost of goods farmers bought low
- lower tariffs help keep prices low

Question 14

who wanted national bank and who didnt?

Answer 14

Hamilton - wanted to start national bank
* Government could deposit money
* Make loans to promote business
* National mint (make its own money)
* 20 year charter
* States encouraged also to start banks so Fed wasn’t a monopoly.

Jefferson/Madison opposed:
*Gave too much power to the federal government
* believed that Congress has no power to create bank.
Strict Construction: federal gov. should do only what the
constitution
specifically says it can do.

Question 15

what construction did hamilton argue

Answer 15

• elastic clause in Constitution states Congress can “make all laws which
  shall be necessary and proper” (The bank is necessary.)

*believed in loose construction: the federal gov. can take reasonable
actions
that the Constitution does not specifically forbid.

Question 16

did Washington agree with Hamilton?

Answer 16

he agreed and issues the bank of the United States of America (it brought stability)