James Madison joins
forces again with his old friend Thomas Jefferson; after Madison denounced the Hamilton plan to consolidate the debts of
the 13 states into one controlled by the government. Like Jefferson, Madison
thought that the wealth of the country should remain with the rights and powers
of the individual states. Madison was also against trading with the
British because prior to the revolution, the farmers were locked into the
British commercial prices.
Jefferson believed that useful crops
played a big role in America’s independence and self-sufficiency, from
Hamilton’s federal bank plan. Jefferson went to work in 1790, with trying to
plant the rice seeds that he had taken from Italy in 1787. He sent seedlings to
close friends to plant and watch grow. It would not be until late in 1816 that
the seeds finally took hold in their environment and began to grow in Georgia
and Kentucky. Jefferson believed that gardening and planting was more patriotic
than politics. Jefferson cherished gardening and planting so much that when he
received the news about the rice taking hold and growing in Georgia that he
added to the same list that included the signing of the Declaration of
Independence.
Jefferson and Madison both agreed that
Hamilton’s Federal Bank would run the country into corruption since it was
based on the model of the Bank of England, and placed in Philadelphia,
Pennsylvania. Once the consolidation of the states debt happened, the first
payment would fall due by the end of 1791. Hamilton estimated that this would
be $788,333 annually. This was not enough to satisfy everything Hamilton needed
to cover so he needed an additional $38,291. He suggested again getting this
money to place a extra tax on imported alcohol. He also wanted to increase the
tax on domestic distilled alcohol sprits; this would lead counties in
Pennsylvania into a Whiskey Rebellion over the increase in domestically
distilled beverages.
This move by Hamilton
to raise money for his federal bank through consolidating the states that owed war debts and the raising of liquor taxes, helped Jefferson and Madison find common
ground on this issue while traveling the American Landscape and talking with
other local politicians that shared the same beliefs. Jefferson and Madison would soon help to create the
Republican Party. Both Madison and Jefferson along with local leaders found
common ground in that the powers within the 10th amendment that
aren’t attained by congress are retained to states or the people, meaning that
congress did not have the authority to start a bank but rather only to regulate
money.
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