Social Studies
Social Studies, 04.05.2020 22:31, Rixi1227

Political leaders in the 1790s took a variety of positions on issues such as the relationshipbetween the national government and the states, economic policy, foreign policy, and thebalance between liberty and order. This led to the formation of political parties — mostsignificantly the Federalists, led by Alexander Hamilton, and the Democratic­RepublicanParty, led by Thomas Jefferson and James Madison.1.Hamilton’s financial plana. Economic plan to stabilize the American economy.1.Consisted of Federal Assumption and the US Bank2.Creation of the Bank of the USa. The first national bank of the US; created as an expansion of fiscalpower and to stabilize the American economy. b.Created by Alexander Hamilton as part of his financial plan.3.Elastic clausea. Also known as the "Necessary and Proper Clause"; it allows congressto pass any law which is seen as necessary and proper for the benefit ofthe country.4.Strict vs. loose interpretation of the Constitutiona. Strict: Constitution grants the government powers which arespecifically granted to itb. Loose: The government is entitled to powers specifically notdeniedbythe constitution.5.Formation of the Federalist Partya. The Federalist party was formed in support of passage of theconstitution by Alexander Hamilton.6.Formation of the Democratic­Republican Partya. Second political party in the United States, and was organized bySecretary of State Thomas Jefferson and James Madison to oppose theFederalist Party run by Secretary of the Treasury Alexander Hamiltonb. The new party controlled the presidency and Congress and most statesfrom 1801 to 1825, during the First Party System.7.Alien and Sedition Acts

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