Cabinet Battle

Jefferson starts the rap battle by quoting his Declaration of Independence. Jefferson, an avid supporter of state government and individual rights, quotes himself to emphasize those values that he holds dear. Jefferson's philosophies thus opposed Hamilton's First Report on the Public Credit because the report analyzed the financial standing of the United States of America and made recommendations to reorganize the national debt and to establish the public credit.[3] Creating national public credit would increase the power of the federal government, something unprecedented in early American history. Also, Virginia, the state of Jefferson's home and estate Monticello, had already paid off its debts, as well as most of the Southern states. Further attacking Hamilton's financial plan, Jefferson raps about the length of the plan, a 40,000 word document,[4] New York politicians such as Hamilton who gained wealth through moving the finances of the actual product producing southern states, and even attacking Hamilton as a greedy man who should not be a politician who gains popularity. As he closes, Jefferson references the British Intolerable Acts and the Boston Tea Party to highlight his foreshadowing of the Whiskey Rebellion. As part of Hamilton's Report, a tax on whiskey became law in 1791, and was intended to generate revenue to help reduce the national debt.[5]

Hamilton begins his rebuttal by accusing Jefferson of being out of touch with the American public, due to his time in France and at his plantation in Monticello, Virginia.[6][7]

Another aspect of Hamilton's attack on Jefferson's person and morals are his slaves. In 1774, the earliest record, it was recorded that Jefferson owned at least 41 slaves.[8] Hamilton makes light of Jefferson's dealing with President George Washington and the discord between the two.

Though Washington likes Hamilton's idea, Hamilton is unable to sway enough others to get the votes he needs. He is thus unable to get his proposal passed, a fact for which Jefferson and Madison mock him. Washington takes Hamilton aside and orders him to work out a compromise that will get his motion passed, hinting that Hamilton may be forced out of office if he can't manage it. This is resolved in "The Room where it Happens" in which Hamilton negotiates a compromise with Jefferson and Madison: in exchange for Madison getting him the votes to push his plans through Congress, Hamilton agrees to support the placement of the U.S. capital in the south.

Jefferson and Madison start the rap battle by reminding the cabinet that France aided the American Revolutionaries during their hour of need. Jefferson also argues that because the Americans signed a treaty between themselves and King Louis XVI, they are honor bound to give aid to them as they enter a war with Britain. Jefferson then insults Hamilton, accusing him of being greedy and stating that he is disloyal. Jefferson notes that he is Secretary of State, not Hamilton, implying that he should have more influence on this decision than the Secretary of Treasury.

Hamilton comes out with a furious statement asserting that Washington would never agree with Jefferson because the new found United States are too disorganized and vulnerable to get involved in international affairs. Indeed, this is evident in Washington's farewell address (written, at least in part, by Hamilton) as the first president promotes neutrality.

Next, Alexander discredits Thomas Jefferson's wish to uphold the treaty with France by arguing that the United States is not beholden to France because Louis XVI had been killed in the revolution.[9]

Cutting Hamilton's rap short, Washington sides with Hamilton, asking him to draft the Proclamation of Neutrality. Jefferson tries to protest by saying that the French are fighting for liberty just like the Americans, but Washington points out that the Americans fought an organized war while the French commoners are simply rioting and overthrowing the hierarchy with no future plans or leaders. Jefferson, furious, confronts Hamilton and accuses him of abandoning Lafayette, the famed French general who aided the Americans during the American Revolution and one of Jefferson's and Hamilton's closest friends. Hamilton responds quickly, saying that he trusts Lafayette to take care of himself and that he was friends with Lafayette before Jefferson. Jefferson leaves the fight while he warns Hamilton that he is powerless without Washington's support. This would prove true during John Adams's presidential administration.[10] This leads into "Washington on Your Side," in which Jefferson, Madison, and Aaron Burr express their contempt for Hamilton and begin to plot against him.

Jefferson acknowledges that slavery is an evil, but argues that the government had already sworn not to consider abolishing it until 1808; this was a necessary compromise to get the southern states on board with the new American government. He further adds that even if slavery were abolished, anti-black racism would still exist, and there's no clear solution on what to do with the newly freed slaves. ("So back to Africa? Or do they get a separate state?") He finally says that he previously tried to ban slavery but couldn't drum up any political support, making Franklin's proposal politically impossible even if it were a good idea.

Hamilton castigates the idea of waiting until 1808 to do anything about slavery, pointing out that as the population grows, it will become harder and harder to deal with the problem. He also tells Washington that their tolerance of slavery will destroy the way that history looks upon them. ("Sir, even you, you have hundreds of slaves, whose descendants will curse our names when we're safe in our graves.") He mocks Jefferson's concerns, arguing that petty concerns such as the south needing labor for its businesses or Jefferson taking slave mistresses are less important than stamping out slavery, and he references Sally Hemings by name.

Madison proposes a compromise in which he will pledge to the south that abolition will not be considered before 1808, as previously agreed, and will pledge to the north that the slave trade will be ended on January 1, 1808. That, he says, will handle the worst of slavery's abuses without driving away the south. He then says that, once his compromise is accepted, he will draft a motion that slavery will never again be considered by the government. Jefferson and Madison—who know about Hamilton's affair with Maria Reynolds—point out that Hamilton has no room to criticize others for taking mistresses.

Washington accepts Madison's proposal. Hamilton protests, but Washington says that if they try to abolish slavery then every plantation owner will demand compensation, which the government doesn't have. After he sighs that maybe the next generation will come up with a better plan, the song ends.