During Washington’s first term, Carey and Coxe supported the Federalist cause.[1] As economic nationalists, they supported Hamilton’s establishment of a national bank. They were disillusioned with Hamilton’s notions about bounties for encouragement of manufactures. He disliked tariffs.They disagree with his notion the wealthy elite were most suitable to govern.

In 1790, Coxe suggested that Carey become acquainted with Thomas Jefferson. As Coxe gravitated towards Jefferson’s emerging Democratic-Republican Party, he convinced Carey to join him. [2]   Jefferson and Madison viewed political independence from Britain incomplete without economic independence. They recommended aggressive trade sanctions to stop Britain from exploiting American commerce with its mercantile policies.[3]

Hamilton forcefully opposed their initiatives, fearing that Britain would retaliate. British imports were an important source of tax revenue. If Britain reduced its imports, tax revenues would decrease ruining America’s credit rating abroad, the very basis of his plan to fund the public debt.   By 1793, Hamilton’s position favoring imports caused disenfranchised manufacturers to leave the Federalists for Jefferson’s new party as well.[4]

 

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[1]Edward C. Carter, The Political Activities of Mathew Carey, Nationalist, 1760-1814, Bryn Mawr College PhD. Dissertation, 1962, 179.

[2] Carter, The Political Activities of Mathew Carey, 180-1.

[3] Douglas A. Irwin, “The Aftermath of Hamilton’s ‘Report on Manufactures,’” The Journal of Economic History, V. 64 N. 3 (September, 2004) 814.

[4] Irwin, “The Aftermath of Hamilton’s Report,” 815.