Verified Document

Alexander Hamilton's Financial Plans First Thesis

Alexander Hamilton's Financial Plans

First of all, Alexander Hamilton's financial plans addresses the immediate liquidity and debt problems of the new government, which included a $54 million debt, plus interest, and an additional $25 million owed by the individual states members of the federation. In order to counter this, Alexander Hamilton proposed a new emission of obligations at a lower interest rate, with which he retired the existing old obligations. The fact that the government proved both willing and able to cover its older debts (represented by the older obligations) was a sign for foreign investors that the new government was trustworthy. At the same time, paying off the entire states' debt was a positive sign for the central federal government in its relations with both the states and foreign creditors.

One of the central entities for any monetary policy and economy, the central bank, was also proposed during Alexander Hamilton's time as Secretary of Treasury. This was modeled on the Bank of England and was primarily aimed at providing a more stable paper currency. At the same time, he proposed a mercantilist approach to economy, with a protectionist policy aimed at defending the emerging American manufacturing from the European imports.

Through these three main measures, Alexander Hamilton ensured the main instruments with which a young economy could be built and become competitive in the future: strong public credit, corroborated with a central financial and monetary institution which would regulate monetary policies and with protectionist tariffs that would defend the manufacturing industry against the cheaper imports from Europe.

Bibliography

1. Digital History - Online American History Textbook. On the Internet at http://www.digitalhistory.uh.edu/database/article_display.cfm?HHID=6.Lastretrieved on February 18, 2009

2. 18b. Hamilton's Financial Plan. On the Internet at http://www.ushistory.org/us/18b.asp.Lastretrieved on February 18, 2009

3. Hamilton and the U.S. Constitution. 2000. On the Internet at http://www.pbs.org/wgbh/amex/duel/sfeature/hamiltonusconstituion.html.Lastretrieved on February 18, 2009

Digital History - Online American History Textbook. On the Internet at http://www.digitalhistory.uh.edu/database/article_display.cfm?HHID=6.Lastretrieved on February 18, 2009

18b. Hamilton's Financial Plan. On the Internet at http://www.ushistory.org/us/18b.asp.Lastretrieved on February 18, 2009

Cite this Document:
Copy Bibliography Citation

Related Documents

Alexander Hamilton and School
Words: 1476 Length: 4 Document Type: Essay

Special Identifications in History; Person, Event and Place Transition from New Amsterdam to New York (1664) New York City is located right at the mouth of the Hudson River. The first European power to visit New York was the Dutch in 1624. The land caught the attention of the administration in Netherlands. The Dutch West India Company hoped to explore the region's fur trade. Peter Minuit purchased a major real estate. Peter

Hamilton Economics
Words: 682 Length: 2 Document Type: Essay

Hamilton's Economic Plan Alexander Hamilton was one of the Founding Fathers, and was the first Secretary of the Treasury. His economic plan was contained in a series of written works that provided the framework for the nation's economic governance. The underlying objectives of Hamilton's economic plan were to provide the nation with the financial stability it would need in case of war, and was also driven by his Federalist viewpoint, in

Macro Vision of Jefferson Vs.
Words: 2374 Length: 9 Document Type: Term Paper

Hamilton's Arguments in Favor of the Debt and the Bank Jefferson would have no position against witch to argue had not Hamilton made the argument for the national debt so eloquently and so forcefully. Essentially, Hamilton and Jefferson entirely disagreed on the proper course to put the nation on a prosperous track. The greatest issue was whether the multitudinous colonial debts piled up by the individual colonies during and since the

Articles of Confederation With the New Constitution
Words: 1097 Length: 4 Document Type: Essay

Articles of Confederation with the new Constitution of 1787. We will see what were the strengths and weaknesses of the Articles vis-a-vis the Constitution and give specific instances that demonstrate the weakness of the Articles, in particular its financial issues. Default and debt is an American tradition and it was initiated with gusto in the days following the Revolution when Dutch and French holders of American bonds found it impossible

Revolutionary Generation
Words: 2378 Length: 5 Document Type: Term Paper

Founding Brothers When studying the history of the formation of the United States, one usually thinks in terms of separate events and individuals. However, the American republic was established, instead, by a series of important decisions and the joint efforts of some of the most prominent men of all time. In a matter of ten years, these critical interactions among the eight leading figures of John Adams, Aaron Burr, Benjamin Franklin,

Politics and Government
Words: 2406 Length: 8 Document Type: Book Report

Government & Politics The arguments contrast two observations. Which of them is the best and why? Give a detailed and substantial response. Charles Beard and John Roche had differing views regarding the American constitution as they hailed from different background. Due to their diverse backgrounds, they have their own views regarding American constitution. A deep study of both authors shows that, John Roche is an optimist and a reformer, while Charles Beard

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now