"Despite all the Hamiltonians' efforts, the Jeffersonians more or less prevailed for decades. The government remained relatively small and decentralized. By the mid-1850s tariff rates were as low as they would be for the entire nineteenth century, and federal subsidies for 'internal improvements' were all but nonexistent. The Bank of the United States was dismantled in the 1830s. The American banking system was dominated by state-chartered banks that issued currency backed by gold and silver on demand and that therefore did not inflate their currency beyond what their specie reserves justified. It was not a perfect system, of course, but two highly reputable economic historians, Jeffrey Hummel and Richard Timberlake, have made compelling cases that it was the most stable banking system the United States has ever had. (Emphasis DiLorenzo's)
"In short, the Hamiltonian economic agenda had been resoundingly defeated time and again. The Hamiltonians had failed to persuade many of their fellow citizens of the alleged virtues of big, centralized government that would primarily benefit the wealthy and politically connected. There was a good deal of support for this agenda in New England and parts of New York, but it was viewed with great suspicion in most other regions of the country."
Keep in mind that it was during this period that the Ohio Constitution was written (1851). While heavily amended, it is still in effect.
All right now, Democrats, pay attention:
"This all changed in the first years of the War between the States. The Republican Party, which now controlled the government, had inherited the Hamiltonian agenda from the Whigs. No one was more committed to the Hamiltonian cause than President Abraham Lincoln..."
American politics has gone downhill ever since.
1 comment:
That was very interesting, as a history buff, I enjoyed reading it though I'm always struck by how we don't bother to pay attention to history to learn what worked and what did not.
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