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Alexander Hamilton's Solution To The Hamiltonian Financial Crisis

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The American Revolution happened to be a very expensive war for America. In order to supply for her military, congress found it necessary to accept loans from France. Following the Revolutionary War, America faced a debt of roughly $80 million to both foreign nations and American citizens. This debt damaged the economy by devaluing money issued by the Continental Congress. Wanting to find quick solutions to these timorous problems as quickly as possible, George Washington granted Alexander Hamilton the task of resolving the issues by writing policies regarding America’s interaction with foreign nations and finance management. Alexanders policies became known as the Hamiltonian Financial policies. These policies worked and had a huge impact …show more content…

During the revolutionary war, America paid her citizens who supplied for the military with notes. These notes represented actual money that would be repaid in full to all note-owners once America’s treasury had recovered. This caused problems after the war because many of these notes were bought by investors for a fraction of their face value. These notes became so prominent that the states soon owed over 50 percent of their post-war debt to American citizens. Hamilton believed a federal bank would keep the economy stable through the use of paper currency. He wanted Americans to invest in a federal bank that could be used to pay foreign and local debts. In order to entice investors, he offered an annual four percent interest rate. This would allow investors to get rich on paper, but it also relied on the fact that everyone would not remove their money simultaneously. The introduction of this banking technique into America made such a huge impact, that it is still relevant today. The National Bank was deconstructed in 1811 by President Andrew Jackson. Following the War of 1812 and the economic chaos that ensued it became quite clear the Alexander’s vision of a federal bank was correct. He also created what is known as an excise tax, which is a tax on wines, coffee, tea, and spirits. The excise tax was intended to raise more revenue for the federal government with which to pay off debts. George Washington liked Hamilton’s solution and saw the impact it could have on America; therefore, he approved the founding of the first federal Bank of the United

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From the time the Constitution was adopted in 1789 to the Missouri Compromise in 1820 a shift in power occurred, this resulted in an expansion of the national governments authority over political and economic matters at the states expense. Hamilton’s economic policies, Marshall Supreme Court decisions, and the Louisiana Purchase were the fundamental factors that lead to this transfer of power. Though not without a fight from the Jefferson Democratic Republican party who supported a limited government and a strict construction, whereas the ultimate contributors to this exchange, the federalist, wanted to extend the powers of the government in order to create institutions that could strengthen the new country. However, despite opposition and pleas against these matters, the means and support behind the federal government proved to strong to prevent this sway and power.

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Due to their recent war with the French, Britain and its colonies were in debt. Britain turned to the colonies as a source of revenue to pay back money, and Parliament passed acts placing taxes and tariffs on the colonies and American trade. Following the revolution, the United States was in debt to France, who helped them fight Britain during the war and supplied money, troops, and supplies. Some Americans demanded paper currency and equal distribution of property (Doc. G). Although the manufacturing industry was growing in America, it was growing very slowly.

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The Bank of the United States was a necessity that our nation could not do without because it created a national currency, created new money through borrowing, and expanded the national economy. The bank would be the capstone of Alexander Hamilton 's financial plan. His plan was for the states debts and federal debts all be assumed by the federal government under the impression that it would bring the states closer to the national government. The willingness of the American people to repay their debts drew the attention of foreign investors. While the first part of Hamilton 's financial plan was successful, many people were still opposed to the idea.

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I would have voted for Alexander Hamilton because from a young age you were able to tell that he was smart, well thought out, and extremely disciplined in every choice he made. And so when he entered the government this planning and knowledge of money and spends really helped to evolve the financial plan of the United States to what it is now. Without Alexander Hamilton`s ideas and aspirations of what the United States money system could do to support the country. You can also tell that with his history he cares about the people he would be affecting in his daily life. Alexander Hamilton was a Federalist.

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All through his book Gordon explains how the debt has influenced and shaped the history of America economy. Hamilton wanted to reshape the American economy, thus he proposed the virtues of the national debt claiming that when it is limited it may be a national blessing. While providing the audience with a history of the American debt, Gordon aims at proving Hamilton 's beliefs. Indeed, the author wants to show that if the debt is used wisely, it may turn out to be a useful political and economic instrument. To support the assertion that the budget deficit is not necessarily evil, he includes different events of the American history.

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9. The Confederation government couldn’t help settle Revolutionary War-era debts. The central government and the states owed huge debts to European countries and investors. Without the power to tax, and with no power to make trade between the states and other countries viable, the United States was in an economic mess by

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He successfully argued for the assumption of state debts by the federal government and the establishment of the first national bank – a private, but partially government-owned institution. He firmly established the principles of financial trading. Due to his efforts, the creditworthiness of the United States was restored. Hamilton’s accomplishments as Treasury Secretary were not achieved without a struggle. His congressional opponents tried to exhaust him by demanding detailed reports on the workings of the treasury department with incredibly short delivery dates.

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Alexander Hamilton throughout his life has had many noteworthy achievements. One of Hamilton’s most important achievement is that he created the first federal bank. This banking system allowed you to make bonds, loans, and more. This has been long lasting and very helpful to people for years and years to come. He also came up with the idea of a national currency or the money we use today.

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Hamilton 's monetary course of action for the nation included working up a national bank like that in England to keep up open credit; cementing the states ' commitments under the focal government; and initiating guarded tolls and government enrichments to empower American makes. These measures fortified the administration 's vitality to the hindrance of the states. Jefferson and his political accomplices limited these progressions. Francophile Jefferson expected that the Bank of the United States addressed an inordinate measure of English effect, and he battled that the Constitution did not give Congress the capacity to set up a bank. He didn 't assume that propelling produces was as basic as supporting the authoritatively settled agrarian base.

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Alexander Hamilton, the first Secretary of Treasury of the United States, had a lot going for himself being a man that came from poverty to success, and he was a man “all powerful and fails at nothing which he attempts” admitted a congressman in 1791 (Tindall and Shi). Born in the Caribbean in the West Indies, abandoned by his father and orphaned at the age of 13 by his late mother who had died. Later moved to New York, became a lawyer and transitioned to nationalism thus giving him the important role of handling the weight of the debt America had accumulated $54 million deep after the Revolutionary War (Digital History). Hamilton saw the need for some financial credit to be given to America and he had the right idea by proposing a National Bank to his first president George Washington. Word dispersed of that proposal leading a

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In this paper I will be discussing why I believe Alexander Hamilton to be an economic genius. Who is Alexander Hamilton?

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During the 18th century, the economy of the United states was practically underwater due to the very expensive war the U.S. had recently ended, known as the “Revolutionary War”. The enormous debt the U.S. acquired was hindering. Determined to make a change, Alexander Hamilton

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Alexander Hamilton became the first Secretary of the Treasury on September 11, 1789. At the time, the United States government had a massive debt that needed to be dealt with. This debt could be divided into two different types: federal debt and state debt. Hamilton estimated that the federal debt was $54 million and the states’ collective debt was $25 million. To handle the gigantic amount of debt, Hamilton proposed a seemingly risky plan.

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By the time Hamilton retired from office in January 1795 the United States had the highest credit ranking in Europe, his policies on the nation's debt and banking had quickly expanded American capitalistic enterprises. His policies also created

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In order to pay such debts back, Hamilton created the federal bank and convinced the Congress to issue federal bonds. This way the federal government could make interest payments on time, build credit while keeping the inflation from rising. Hamilton thought that the national debt could be a useful tool in order to create capital while letting the American industry to be highly competitive in foreign trade. In his book, Gordon also recalls that soon after the 1812 War the seventh President of the United States paid off the government debts thanks to surpluses deriving from high tariffs. Then, he explains that the introduction of the first Federal income tax in America during the Civil War proved to be decisive in order to investigate how to distribute the tax

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