separation of powers

Separation of powers refers to an act of vesting the legislative, executive, and judicial powers of government in separate bodies, so no one branch becomes too powerful.

What Alexander Hamilton was saying in this passage was that state governments would still control what was most important to people's every day lives: local issues and law enforcement powers.Hamilton felt that state governments would only be subservient to the the national government in certain areas like military, economic development, and foreign policy. 

As Michael P. Federici argues, "because the states would always be more proximate to the people and because human nature creates greater affection for what is closest to one-self, the national government would be incapable of winning the affection of the people." 
Annotated by bacraig on September 26, 2014
Regarding executive compensation, Benjamin Franklin took the Virginia Plan one step further.  He proposed not to pay the president at all to ensure "honor" and undue influence from the legislature.  As he argued, a prime motivator for people was money, and this motivation should be removed from the power equation.
Annotated by bacraig on May 06, 2014