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Why Party Politcs Developed After 1789 In The United States

2701 words - 11 pages

Why Party Politcs Developed After 1789 in the United States

Partisan Politics in the newly formed United States of America was being established before the stipulated time governing this essay suggests. From as early as the Articles of Confederation and by the time of Ratification, Partisan politics was well on its way to play an integral role in the United States political life. It was tried to be avoided as dual-parties were thought to be a weakness in a Nation, however this was unavoidable.
The rise of factionalism is often paralleled to the fiscal policies of the 1st Secretary of the Treasury, Alexander Hamilton. Hamilton in modern day analysis is considered to be a man of great foresight, this being illustrated in the three Reports he submitted to Congress. However, these Reports guided America to theirs
Multiparty system.
The 1st of Hamilton's Reports was that on the state of Public Credit. In this report he suggested Government assumption of Domestic Debt. This was to be liquidated by taxation, which agitated many. However, the most controversial
recommendation in this Report was to allow Government creditors to exchange their securities, which were depreciated at face value, for the newly implemented interest gaining bonds. James Madison, who will be associated with the rising opposing faction, was the voice of the opposition. Representing his interests and those of his fellow Southerners, rejected assumption, justifying this by asserting that many States had nearly finished paying their Revolutionary debts and that some like Virginia had in fact paid their entire debt. Thus, it would not be fair for those States to be taxed for the debts of others.
Furthermore, Madison contends, with reference to the Bonds, that they will be of no benefit to Southerners as several men with Northern interests Merchants, Speculators, Businessmen, had postulated Hamilton's intentions and had bought the 'securities' at face value and at prices which Nash quotes Madison describes as "a fraction of the initial worth." Thus, the exercise would be of no benefit to the

South.
It is therefore easy to notice factional differences in relation to regional differences. The South was already worried about the survival of their institution of slavery, as from the onset of the creation of the National Government already what they viewed as Northern interests were being advocated in Congress, they and their were not then as eagerly represented in Congress as they would have liked to be.
Hamilton's fiscal insight or what Norton described as 'matters of policy', is further illustrated in his proposal for the creation of a National Bank. This bank would assist in the creation of one identifiable and controllable currency, it could lend the Government money, collect and disburse money for the Treasury. This Report faced opposition not on policy as the 1st Report but on the constitutionality of such a move by Government. The opposition was represented...

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