Alexander Hamilton First Report On Public Credit

The mysterious man behind the United States ten dollar bill is Alexander Hamilton who was appointed by President George Washington as the first Treasury Secretary of the United States in 1789. Congress urged Hamilton to run a report on public credit since most of the resources had been exhausted and the national debt was at an all-time high, he then later presented the First Report on the Public Credit in January 1790 and a Second Report on Public Credit suggesting the need for a National Bank in December 1790. Aside from being one of the United States founding fathers, the First Report and Second Report were one of Hamilton’s most influential and undoubtedly innovative pieces of work because he established the first financial systems of principles

Hamilton made it clear that some debt was essential for economic sustainability because debt encouraged people to borrow money - to spend. However, he knew that in order to be an independent nation the United States needed to find a way to be economically self-sustainable. Hamilton “made two sweeping proposals:”, (Brookhiser, 2016, p.2) in his first credit report, he suggested that the new federal government would pay off their own debt and the debts of the states as well. His second suggestion was the debt would be paid at the same common rate for all states, there would not be inequality amongst states being one paying more than the other. Not only was this was a very controversial matter because the states that stayed on top of their dues felt very little empathy for the less fortunate states that didn’t meet up to pay their dues but in order to pass the ⅔ rule in congress. America also owes soldiers money and also others who had bought IOU’s at a discounted rate but were promised to be paid in full. Hamilton had to agree to move the wealth to Philadelphia. Despite the United States economic hardships, Hamilton was a firm believer in his suggestions which would keep track of the nation's expenditures and would keep the public debt managed. The United States established a way to manage public debt but what would be

The Second Report by Hamilton was the proposal of the first bank of the United States of America. The bank was created to handle very important tasks such as: managing federal government's funds, debt, loan money, on the other hand, the bank was also in charge of managing the sales of shares to the people and businessmen. Hamilton emphasized that the bank should be a private corporation because he feared politicians would take advantage of the new system. Not only was this idea brilliantly well thought out and innovative on Hamilton's behave but it also helped keep his end of the bargain because all the wealth was moved to Pennsylvania. The bank of the United States of America was one of the most essential components of economic innovation that paved the way for economic growth and establish economic sustainability of “national economy and government spending”, (Prillaman, S. & Meier, K. 2014, p. 366) creating a balance between both means the government and the