Alexander Hamilton's Financial Plan

The United States was plagued with the economic instability following the American Revolution, so they devised multiple strategies to facilitate the situation. As well as deal with economic issues following the Revolutionary War with Great Britain, the US had to formulate methods to deal with all its foreign conflicts it had amassed. From 1787 to 1816, the United States initially struggled to deal with their economic debt due to taxation revolts by citizens who did not support the reforms, but was able to fix the issues through the use of Alexander Hamilton’s financial plan as well as deal with their foreign conflicts successfully through intelligent treaties. The United States attempts to solve their economic debts through taxation did

Hamilton ensured that many of the holders of financial dept would be wealthy merchants, so that they had a financial stake in the new governments survival. This caused wealthy merchants to therefore become involved and want the government to be successful due to their financial stake in its future success. The establishment of a central bank was one of Hamilton’s reforms that allowed the American economy to stabilize and thereby establish its own currency . A bank gave the United States the opportunity to print their own currency, so that they would no longer be forced to utilize the British pound. This served as a solution to the United States identity issue, as it no longer identified itself with that of its oppressor’s currency. The bank also served as a collecting and distributing agent for the nation, making it a place of investment and opportunity. Such opportunities included the lending of money, holding of deposits, which therefore extended business and industry affairs . To fund state debts, the national government implemented a tax on Whiskey, which caused mass rebellion by farmers out west in

The establishment of the Jay Treaty in 1794 led to the prevention of a war between the US and Britain, peaceful trade, as well as punishments for damages done towards US ships by Great Britain . The treaty, which was signed by George Washington, resolved mounting tensions between Great Britain and the US as well as stopped a war from erupting between the two countries. Washington took executive action and made sure that the treaty went through, because he would rather deal with his foreign affairs and be on good terms with other countries than have a long-standing conflict. The treaty gave the US great economic advantages by broadening trade access through diminishment of British ports and the establishment of commissions for ship damaged by the British. The Jay Treaty forced Great Britain to relinquish control of all its western U.S. forts and ports . With the British relinquishing control of these amenities, restrictions on American trade to both England and the Caribbean diminished, allowing for greater economic prosperity and foreign relations. Under the Jay Treaty, the British were forced to establish commissions to receive claims for ships damaged by Great Britain and its seizures. This form of compensation allowed for Great Britain to take responsibility for the damages they caused. These commissions also