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Analyzing Alexander Hamilton's Financial Crisis

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After the American Revolution, the United States found itself in a big financial hole. The country found economic trouble both inside the country and internationally. The U.S. had accumulated a massive amount of debt in addition to angering their revolutionary allies. Federalist Alexander Hamilton was named by President George Washington as the first Secretary of the Treasury. Hamilton was tasked with not only solving the nation’s financial difficulties, but also to put the economy in a position to succeed in the long term. The result of this is Hamilton’s Financial Plan. Hamilton’s Financial Plan called for the full repayment of national debts and restore the United States’ credit, the creation of a national bank, the development of a national currency, and the growth of the American manufacturing industry. Perhaps the greatest burden on the nation’s economy following the revolution was the staggering debt the country had incurred. Hamilton’s research revealed that this debt stood at $54 million. This debt accumulated not only as a result of loans taken from foreign countries, but also government certificates issued to soldiers and citizens promising compensation after the end of the revolution. Hamilton’s recommendation for the foreign …show more content…

Hamilton reasoned that taking advantage of the country’s rich natural resources would allow the U.S. to eliminate its dependence on importing European manufactured goods. Hamilton concluded that government intervention would allow America to become self-dependent quicker than if the manufacturing industry was left to develop on its own. Even though the recommendation had stiff resistance, Congress eventually adopted the policy and Hamilton set the nation on a path to become a manufacturing

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How Did Hamilton Believe In Debt

165 Words | 1 Pages

After the Revolutionary War, most states went into debt because the finance of the Revolutionary War pushed out the taxes three or four times the level to help wage the war. Most American demanded the relief of high taxes and heavy debt. Alexander Hamilton "instituted a plan to get the brand new nation off on the right foot financially." Hamilton believed in debt because in order to establish credit you must have the ability to borrow in the future. Hamilton also wanted to establish a national bank to unify and stabilize currency called the Bank of the United State.

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Why Did Alexander Hamilton Sign The New Constitution

299 Words | 2 Pages

However, Hamilton, our first secretary of state, Thomas Jefferson usually never agreed with each other, but that didn’t stop Hamilton to create our first National Bank that was submitted on December 14, 1790. Unfortunately, not everybody liked Hamilton’s ideas because in 1804 Hamilton had died. (“Alexander Hamilton”). After Hamilton's death in 1804, Jonathan Dayton who was elected a seat in our first Congress, he still supported “Hamilton’s financial program” and was “pressed for suppression of the Whiskey Rebellion” (“Jonathan Dayton”). In the end, Hamilton showed leadership by creating our first National Bank, fought in our war like Odysseus fought for his men on his journey home from the Trojan, and wrote two-third of our new

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1511 Words | 7 Pages

Lectures Lecture 14 “Questions to Consider #1”: Why did the Anti Federalists object so strongly to the Preamble to the Constitution? The Anti-Federalists objected so strongly to Preamble to the Constitution due to the fact the Preamble establishes powers for the three branches of government, states’ relations, mode of amendment, debts, national supremacy, oath of office, and amendment ratification. This group felts as though when the federalists wanting to create a strong central government would not be strong enough if the Preamble was not put into place. Lecture 14 states, “Anti-federalists suspicious of central power fought the new Constitution tenaciously…..

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Hamilton's Contribution To The Confederacy Era Debt

246 Words | 1 Pages

A publicly funded debt contributed to national government stability. Previously, the treasury must not deal with Confederacy Era debt, although Hamilton suggested Congress to redeem fifty-five million dollars to foreign banks, soldiers, and contractors. The Republican ideology regarding debt was that America must pay it off and that states are responsible for their own actions. However, Hamilton’s response to the debt was to fund it, rather than paying it all off. He believed that debt is good, which was a contrast to the Republican ideology.

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What Challenges Did George Washington Face As A President Essay

1019 Words | 5 Pages

Second, Hamilton’s financial plan said that the nation needed to combine the debt between the southern and northern states to get rid of all of the war debt. The southern states disliked this a lot and were very angry that that they had to pay off the debt of the north after they already payed of all the debt of their own. The southern states also pointed out that this plan should not be accepted by Washington because it was unconstitutional and was not stated in the constitution. Lastly, George Washington had to made a decision if he agreed with Alexander Hamilton to set up a National Bank. Once again, this was Thomas Jefferson vs Alexander Hamilton.

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1613 Words | 7 Pages

Hamilton controls the Customs Service, the Coast Guard, and appoints a vast network of men to collect import duties and taxes. He sees America as an undeveloped land with great potential. He sets out to reshape the country, to transform it into one of the great nations of the world. In a very short time, he puts a series of great proposals before Congress -- instituting a national currency, the dollar; establishing a national bank, the forerunner of the Federal Reserve. Hamilton's vision spurs the growth of the stock market, the engine of the country's future prosperity.

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946 Words | 4 Pages

The topic of the night was the national debt crisis. Alexander Hamilton, a strong supporter of federal assumption, and James Madison, a loyal Virginian, were among the guests of this carefully calculated soiree. Personal motivations of wealth and power guided their conversations. Hamilton’s economic plan was devised to benefit the urban elite, who were, in his mind, the keystone of American economics. States like Virginia that had managed to pay off large amounts of their debt, now risked being charged more in new taxes under Hamilton’s plan.

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1403 Words | 6 Pages

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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876 Words | 4 Pages

Hamilton nearly killed himself fulfilling these requests, but he did so brilliantly and completely, in turn exhausting congress going through them meticulously. He dazzled them with his brilliance and many were simply intellectually incapable of comprehending his plans. Not content to establish the customs service and the coast guard, and create a stable monetary system for the new government, Hamilton also dabbled in the affairs of state, much to the chagrin of Thomas Jefferson. He was once again an indefatigable assistant to Washington. Hamilton left the cabinet after Washington’s first term, returning to his New York law practice to repair his family finances, but Washington continued to rely upon him, as did many other cabinet members.

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1449 Words | 6 Pages

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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Jefferson Vs Hamilton Case Analysis

1092 Words | 5 Pages

If it would have been adopted, it would ensure that power rested on the people, and that they would never be at the mercies of the state and the federal government (Broadwater, 2012). However, the acute vision of Hamilton prevailed, making the American people not to have an access of the wide array of privileges they had widely anticipated. If the financial debt plan had worked, it would also limit unnecessary spending by the national government, and ensure that people had a say on the things that mattered mostly to them. The weak central government would act as an overseer of the states, and would not be domineering in their affairs as it has been since Hamilton’s death (Mattern, 2005). This would also ensure that the American people had an increased autonomy from the political class, and ensure that they are free to engage in their daily activities without interference by the various federal programs that were proposed and adopted courtesy of Hamilton.

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1568 Words | 7 Pages

Hamilton wanted to create public credit with a treasury system, a national bank, a mint, and increase manufacturing which would help unify the country. On the other hand, there was Jefferson, who opposed a strong central government. He argued that the “wealthy would gain at the expense of ordinary Americans and that Hamilton’s political economy would corrupt the morality of citizens and undermine the social conditions essential to republican government”(Powerpoint). The country would opt for an approach closer to Hamilton’s views. One of the first acts was the National Banking Act.

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961 Words | 4 Pages

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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282 Words | 2 Pages

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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1481 Words | 6 Pages

Hamilton 's Blessing. Bloomsbury Publishing USA, 2010 Likewise, Gordon hopes that thanks to the national debt the nation might achieve a similar aim in the coming years. Gordon sums up the American economic history in six chapters of his book. He explains that the United States had taken on huge debts following to the American Revolution.

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