The Protective Tariff.-A third part of Hamilton's program was the pro-tection of American industries.The first revenue act of 1789,though designed primarily to bring money into the empty treasury,declared in favor of the prin-ciple.The following year Washington referred to the subject in his address to Congress.Thereupon Hamilton was instructed to prepare recommendations for legislative action.The result,after a delay of more than a year,was his Report on Manufactures,another state paper worthy,in closeness of reasoning and keenness of understanding,of a place beside his report on public credit.Ham-ilton based his argument on the broadest national grounds:the protective tariff would,by encouraging the building of factories,create a home market for the produce of farms and plantations;by ****** the United States independent of other countries in times of peace,it would double its security in time of war;by ****** use of the labor of women and children,it would turn to the production of goods persons otherwise idle or only partly employed;by increasing the trade between the North and South it would strengthen the links of union and add to political ties those of commerce and intercourse.The revenue measure of 1792bore the impress of these arguments.
The Rise of Political Parties
Dissensions over Hamilton's Measures.-Hamilton's plans,touching deep-ly as they did the resources of individuals and the interests of the states,awak-ened alarm and opposition.Funding at face value,said his critics,was a gov-ernment favor to speculators;the assumption of state debts was a deep design to undermine the state governments;Congress had no constitutional power to create a bank;the law creating the bank merely allowed a private corporation to make paper money and lend it at a high rate of interest;and the tariff was a tax on land and labor for the benefit of manufacturers.
Hamilton's reply to this bill of indictment was ****** and straightforward.Some rascally speculators had profited from the funding of the debt at face value,but that was only an incident in the restoration of public credit.In view of the jealousies of the states it was a good thing to reduce their powers and pretensions.The Constitution was not to be interpreted narrowly but in thefull light of national needs.The bank would enlarge the amount of capital so sorely needed to start up American industries,giving markets to farmers and planters.The tariff by creating a home market and increasing opportunities for employment would benefit both land and labor.Out of such wise policies firmly pursued by the government,he concluded,were bound to come strength and prosperity for the new government at home,credit and power abroad.This view Washington fully indorsed,adding the weight of his great name to the inherent merits of the measures adopted under his administration.
The Sharpness of the Partisan Conflict.-As a result of the clash of opin-ion,the people of the country gradually divided into two parties:Federalists and Anti-Federalists,the former led by Hamilton,the latter by Jefferson.The strength of the Federalists lay in the cities-Boston,Providence,Hartford,New York,Philadelphia,Charleston-among the manufacturing,financial,and commercial groups of the population who were eager to extend their business operations.The strength of the Anti-Federalists lay mainly among the debt-burdened farmers who feared the growth of what they called "a money power"and planters in all sections who feared the dominance of commercial and man-ufacturing interests.The farming and planting South,outside of the few towns,finally presented an almost solid front against assumption,the bank,and the tariff.The conflict between the parties grew steadily in bitterness,despite the conciliatory and engaging manner in which Hamilton presented his cause in his state papers and despite the constant efforts of Washington to soften the asper-ity of the contestants.
The Leadership and Doctrines of Jefferson.-The party dispute had not gone far before the opponents of the administration began to look to Jefferson as their leader.Some of Hamilton's measures he had approved,declaring after-ward that he did not at the time understand their significance.Others,particu-larly the bank,he fiercely assailed.More than once,he and Hamilton,shaking violently with anger,attacked each other at cabinet meetings,and nothing short of the grave and dignified pleas of Washington prevented an early and open break between them.In 1794it finally came.Jefferson resigned as Secretary of State and retired to his home in Virginia to assume,through correspondence and negotiation,the leadership of the steadily growing party of opposition.
Shy and modest in manner,halting in speech,disliking the turmoil of public debate,and deeply interested in science and philosophy,Jefferson was not very well fitted for the strenuous life of political contest.Nevertheless,he was an ambitious and shrewd negotiator.He was also by honest opinion and matured conviction the exact opposite of Hamilton.The latter believed in a strong,active,"high-toned"government,vigorously compelling in all its branches.
Jefferson looked upon such government as dangerous to the liberties of citizens and openly avowed his faith in the desirability of occasional popular uprisings.Hamilton distrusted the people."Your people is a great beast,"he is reported to have said.Jefferson professed his faith in the people with an abandon that was considered reckless in his time.