2 Pages 578 Words
Alexander Hamilton was brilliant businessman who came into the Treasury
department with many ideas on how to stabilize the struggling American
economy. He was a thirty-four year old native of the West Indies, who was a
crucial part of President Washington's cabinet. His ideas and philosophies
helped to pave th4e way for the Bank of America and the Treasury.
As one of his first acts as Secretary of Treasury, Hamilton was determined
to reverse the financial problems that plagued the government and country
under the recently revised Articles of Confederation. His plan involved
favoring the wealthier members of society, who would in turn give money and
moral support to the government. The government would then prosper and the
benefits would be reaped by all.
Hamilton was also dead set on sustaining the national credit. He needed the
support of the masses in order to advance his economic plans. His plan of
action in this case was "funding at par," which involved the federal
government paying off its debts at face value, plus accumulated interest,
which came to a total of fifty-four million dollars, a very substantial
amount of money at that time. While still backing his national debt plans,
Hamilton also suggested that Congress pay the debts of the individual
states, equaling some twenty-one million dollars.
This idea of "assumption" was believed by Hamilton to be an obligation of
Congress because the debts occurred during the country's fight for
independence. Hamilton also believed that paying off the State's debts would
create more unity in among the States.
With the government trying to pay both national, and local state debts, they
shortly fell into a seventy-five million dollar overall debt. Hamilton did
not see this as a problem, but more of an advantage to the growing American
economy. His philosophy was that the more countries that America owed money,
the more people who h...
Page 1 of 2
Essays related to Alexander Hamilton