The American System Part 2

Review Questions

1. What was the main argument against bounties?

2. How did Alexander Hamilton frame the argument for the constitutionality of bounties?

3. In Hamilton’s opinion how did bounties aid the general welfare?

4. Did James Madison agree with Hamilton’s view on bounties?

5. Explain Madison’s view on bounties.

6. Explain Thomas Jefferson’s argument against bounties?

7.  Congressman Hugh Williamson said the granting of bounties would cause oppression of the South by the North. Why?

8. Was the sectional breakdown on the congressional vote on bounties significant?

9. Who had the better argument on bounties? Madison and Jefferson or Hamilton? Why?

10. Are tariffs constitutional?

11. Are protective tariffs constitutional?

12. How and who would decide which industries should be protected?

13. What did the vote on the Tariff Bill of 1792 indicate?

14. Was the formation of a national bank an enumerated constitutional power?

15. What did the 1791 vote on a national bank signify?

16. What were Madison, Randolph and Jefferson’s opinions of the constitutionality of a national bank?

17. What specific constitutional clause did Hamilton use to justify the formation of a national bank as an implied power?

18. Why did it seem that the South consistently voted against Alexander Hamilton’s economic system?

Additional Resources

Clarence B. Carson
A Basic History of the United States (Vol.3): the Sections and the Civil War 1826-1877

A Basic History of the United States (Vol.2): the Beginning of the Republic 1775-1825

Thomas J. DiLorenzo
Hamilton’s Curse: How Jefferson’s Arch Enemy Betrayed the American Revolution–and What It Means for Americans Today

F.W. Taussig, The Tariff History of the United States
http://mises.org/books/tariff_history_taussig.pdf

The American System
http://en.wikipedia.org/wiki/American_System_(economic_plan)

W.M. Curtiss, The Tariff Idea
http://mises.org/Books/tariff_idea_curtiss.pdf 

Henry Hazlitt, Economics In One Lesson
http://www.fee.org/files/doclib/20121116_EconomicsInOneLesson.pdf 

Murray N. Rothbard, A History of Money and Banking in the United States
http://mises.org/books/historyofmoney.pdf 

Murray N. Rothbard, The Mystery of Banking
http://mises.org/Books/mysteryofbanking.pdf

Alexander Hamilton, Report on Manufactures (1791)

http://constitution.org/ah/rpt_manufactures.pdf

Alexander Hamilton, Opinion on the Constitutionality of a National Bank 15 February 1791

http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=875&chapter=63867&layout=html&Itemid=27