Taming the Sacramento: Hamiltonianism in Action

Abstract

ONE OF THE OLDEST CONCEPTS in American political thought is the Hamiltonian vision of a close partnership between business enterprise and the government. In actual practice, the Republican (Federalist, Whig) party never called for an inactive government, the laissez faire nonentity of current political mythology, but rather for a positive state continuously intervening in the economic sphere to create conditions which entrepreneurs deemed helpful to the development of resources. It was precisely this issue, in fact, which most insistently claimed Jefferson's attention. To him and to the party which he founded, a business-government alliance meant only corruption and exploitation. Separation of government and business was as important as separation of church and state.1 The nineteenth century, however, moved steadily in the Hamiltonian direction. Especially was it true on the state level that vigorous efforts were made to promote the development of resources, as well as to regulate the business community.2 These patterns may be clearly seen within the state of California. The hydraulic mining controversy, for example, passed through the full range of alternatives from direct government help to the prohibition of an entire industry in the name