Alexander Hamilton: The First Bank Of The US

At this time the government was funding its debt through private banks such as the Bank of North America and the Bank of New York. Not satisfied with the structure of American banking, Hamilton reported to Congress the need to establish a National Bank in December of 1790. The Senate created a committee to study Hamilton’s proposal. On the committee were men who shared Hamilton’s ideas in fiscal matters, and that of a strong federal government. One of the members, General Schuyler, was Hamilton’s father in law. It was of no surprise that a bill arose out of the committee supporting Hamilton’s plan to incorporate a Bank of the United States.

Hamilton’s creation of the first bank in the United States continues to exist in today’s economic environment. However, at that time Hamilton’s proposal was met with widespread resistance from individuals such as James Madison and Thomas Jefferson who considered the creation of a federal bank as unconstitutional. The analysis made by Gordon in his book is consistent with arguments made by to have a bank that would be effective in order to implement the powers authorized by the government as it was implied in the constitution

Alexander Hamilton was one of the most influential figures to shape American finances. He made his contribution through the The Hamiltonian Economic Program. The goal of his plan is to improve the American economy through three steps. The first is to pay off the nation’s national debt in order for states to focus on business. This way maximum profit can be achieved. The second step is to place tariffs on imported goods to gain money. Lastly is to create a national bank in order to regulate money flow and currency. However, Thomas Jefferson strongly disagreed with Alexander Hamilton’s views which was evidently seen in the political parties, the Democratic Republicans and the Federalists. One of the main differences between the two is regarding the type of government America would have. Hamilton favored a strong federal government while Jefferson favored a small local government.

Alexander Hamilton never achieved the highest position in office, but he was a few of America's Founding Fathers. He first joined the army during the Revolution and became an aide for George Washington. Hamilton quickly moved up in society. Political parties began to form during the struggle over ratification of the Federal Constitution of 1787. The attention changed for the creation of a new Federal Government to the question of how powerful the Federal Government would be. Led by the Secretary of Treasury Alexander Hamilton, a Federalist, really wanted a strong central government. Alexander Hamilton's view on human nature was shaped by his war experiences. People had their own hobbies, interests, and money put above patriotism and of the country. Another role that Hamilton played in establishing the U.S. Government was that he really depended on the United States developing a strong economy. In all, there were three roles Alexander Hamilton used in establishing the U.S Government which were forming a strong central government, his view on human nature, and developing a strong economy.

The national bank, which was established by Alexander Hamilton, helped Americans in many ways. One, the national banks was a way to store money for individuals. Two, it was a place to give out money temporarily. This money lending process was named a loan. The main purpose of the national bank was to supply paper money and handle government funds.

In the beginning, The Articles of Confederation ruined all sense of a strong central government in the Colonies. The Articles of Confederation gave power to the states to govern themselves, and as we later learned, the idea to give power to the states to govern themselves individually was a very weak idea. Most people who didn’t own land, also known as freeloaders, didn’t have much or any say at all in the government. We needed change, and we needed it quickly. This is where, Alexander Hamilton, comes into play. Not only did he understand that a strong central government was crucial for a nation to succeed, but he had also understood that speaking out about his beliefs were just as important. His assertive and outgoing personality about his beliefs consequently helped him play a key role in the early form of the government.

After the war, Alexander Hamilton was able to establish the first national bank and currency from the newly acquitted Constitution of 1789. The economy progressed as the market was now being regulated without the intervention of the government. The need of a stable economy was crucial due to the fact that the people were desperate for change and they were vulnerable enough to be persuaded into any radical

After the American Revolution, the American economy was in financial chambles because of the debt that was created due to the war. Under the new constitution, Alexander Hamilton was appointed as the secretary of the treasury. Knowing the repercussions of how national debt would prevent America from earning the status of a world power like Great Britain, Hamilton urged for a bold proposition that would pay the debt at face value which was highly effective since the debt was paid fully almost two decades later. That was part of his 3 reports that would help the american economy. The institution of a national bank was the second report, he wanted to create a influx of the money supply by issuing out federal bank notes. His final report was about raising government revenue and was established by placing high tariff on imported goods to ensure the stable stream of income for the federal government and to boost the growth of the American

Alexander Hamilton, first Treasury Secretary of the United States, was a financial genius who had great visions for the economy of the new nation. In order to reach economic greatness, he developed a plan to launch the country off the ground. This included a strategic method involving assuming state debts, customs duties and excise taxes, and establishing the Bank of the United States. Hamilton believed that if all these portions were carried out correctly, America was destined for economic success and international admiration. This plan clearly showed off Hamilton’s favoring of the wealthy and his belief in “trickle down economics.” The bank was established in 1791

Admittedly, the bank would be used to safely store the government’s money. Of course, the bank would be able to make loans to the government as well as businesses. True, he also believed the U.S. should make a national mint so the U.S. could produce their own currency. Indeed, this is why Hamilton believed the U.S. needed a national bank.

He created a cabinet of advisors: Secretary of Treasury, Alexander Hamilton; Secretary of War, Henry Knox; Attorney General, Edmund Randolph; and Secretary of State, Thomas Jefferson. Washington set the example for how these roles would interact with the presidency, modeling the cabinet as the chief executive's private, trusted advisors. He also established the first federal bank of the United States. The Bank of the United States was established in 1791 to serve as a repository for federal funds and as the government’s fiscal agent. Although it was well managed and profitable, critics charged that the First Bank’s fiscal caution was constraining economic development, and therefore, the charter was not renewed in 1811. He proved again how a president should be the benefactor for citizens when he convinced the federal government to assume state debts from the war. He also spent a significant amount of time planning the new national capital, which now holds his name as Washington DC. (Steele

The Bank of the United States was mainly protested because of its modelling after the Bank of England. Hamilton’s main purpose of founding this bank was to prevent inflation. This was done by having the bank issue currency so that Congress did not print off more money to pay off debt and cause inflation. The Bank of the United States shows explicitly how influential Hamilton was during this time because this bank stabilized the country then and is known as the Federal Reserve System

There have been many controversies since the United States declared independence in 1776. One of the many domestic issues that divided American citizens was developing the First National Bank in the late 1700s. Hamilton was in favor, while Jefferson opposed and American citizens chose their side based on what they believed what was best for the country. Hamilton proposed a Report on a National Bank in December of 1790 announcing what the National Bank would include. Hamilton’s proposal included, “The bank’s stock would be worth $10,000,000. 20,000 shares would be sold privately at $400 per share ... 5,000 shares or $2,000,000 of bank stock would be bought by the U.S. government. The bank would be run by a 25-man board of directors - 20 chosen by the shareholders and 5 by the government. The bank’s president would be elected by the board of directors. Notes and bills (money) issued by the bank would be redeemable on demand ... and would be accepted by the U.S. government for all payments due. The bank’s charter would run for 20 years and would be subject to renewal by Congress. The bank would be allowed to establish branch offices in other cities; its main branch would be in Philadelphia, the nation’s capital” (http://www.digitalhistory.uh.edu/teachers/lesson_plans/pdfs/unit3_ 4.pdf). Although the first part of the bank bill, establishing a national mint, did pass with ease, supporters and opposers debated the rest of the bill, which included the development of

Hamilton's fiscal insight or what Norton described as 'matters of policy', is further illustrated in his proposal for the creation of a National Bank. This bank would assist in the creation of one identifiable and controllable currency, it could lend the Government money, collect and disburse money for the Treasury. This Report faced opposition not on policy as the 1st Report but on the constitutionality of such a move by Government. The opposition was represented by James Madison and Thomas Jefferson, who both ignored the benefits of such an institution and simply questioned the constitutionality.

"Cabinet Battle 1", "Cabinet Battle 2" and "Cabinet Battle 3" are songs written for The Hamilton Musical and are based on the life of Alexander Hamilton. These songs relate the discussions between George Washington, Alexander Hamilton and Thomas Jefferson about different points of view in relation to three themes, the national debt, the organization of the national bank, and the proper course of foreign relations. Hamilton and Jefferson always had differences in criterion and this generated controversy and discussions between both. Hamilton understands that Jefferson was not present during part of the War of Independence because he remained in Paris a long time; he left in 1784 and it was not until 1789 that returned and accuses of not protecting the values of the American people.