Alexander Hamilton: Financing The Government
After creating a Bill of Rights, the new United States congress turned its focus to the issue of financing the new government. Alexander Hamilton was hired to be the Treasury Secretary by president George Washington. Hamilton made it his duty to develop an economic structure for the United States that would ensure public confidence in the government’s financial affairs.
Hamilton didn’t want to implement the constitution verbatim rather using the loose interpretation of it. He believed that a solid central government would help boost the economy and regulate many things throughout the country.
Part of Hamilton’s plan to gain the people’s trust was to assume all of the states debts. However, the southern states had already paid off their debts,
so he decided to put the state capital there. He would also assume the Confederations debts, interest included. He felt that having a national debt would give the citizens a feeling of unity and eventually respect for the government.
Another part of his plan was to build a bank. He felt the bank would facilitate his needs to pay debts, collect taxes, issue money, and also have enough to deposit. In doing so, he would fulfill the constitutional clause that asked for what is “proper and necessary.”
Hamilton was good at what he did and had plenty of supporters that believed in his plan, but he also had opposition. His number one critic was Thomas Jefferson who was Secretary of State in President Washington’s Cabinet. He believed in a decentralized government to protect life, liberty, and property.
Unlike Hamilton, Jefferson believed in interpreting the constitution verbatim, state ruled government, and disapproved of Hamilton’s bank idea due to it exceeding federal authority.
Jefferson and Hamilton both had public supporters of their opinions, but what started as political views escalated into two political parties. The Jeffersonians that believed in strict constitution laws, versus the Hamiltonians, happy with a more lenient interpretation.
Hamilton didn’t want to implement the constitution verbatim rather using the loose interpretation of it. He believed that a solid central government would help boost the economy and regulate many things throughout the country.
Part of Hamilton’s plan to gain the people’s trust was to assume all of the states debts. However, the southern states had already paid off their debts,
so he decided to put the state capital there. He would also assume the Confederations debts, interest included. He felt that having a national debt would give the citizens a feeling of unity and eventually respect for the government.
Another part of his plan was to build a bank. He felt the bank would facilitate his needs to pay debts, collect taxes, issue money, and also have enough to deposit. In doing so, he would fulfill the constitutional clause that asked for what is “proper and necessary.”
Hamilton was good at what he did and had plenty of supporters that believed in his plan, but he also had opposition. His number one critic was Thomas Jefferson who was Secretary of State in President Washington’s Cabinet. He believed in a decentralized government to protect life, liberty, and property.
Unlike Hamilton, Jefferson believed in interpreting the constitution verbatim, state ruled government, and disapproved of Hamilton’s bank idea due to it exceeding federal authority.
Jefferson and Hamilton both had public supporters of their opinions, but what started as political views escalated into two political parties. The Jeffersonians that believed in strict constitution laws, versus the Hamiltonians, happy with a more lenient interpretation.