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Why Is It Important To Create A National Currency?

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Why Is It Important To Create A National Currency?
The Bank of the United States was a necessity that our nation could not do without because it created a national currency, created profits, and the government could control inflation. The father of this idea was Alexander Hamilton, who wanted a bank system similar to the Bank of England. The bank, that was modeled after the Bank of England, would be able to hold government funds, collect taxes, and make loans to the government when taxes were low. The bank would be the capstone of Hamilton's financial plan. His plan to conquer the debts from the Revolutionary War was for the states debts and federal debts all be assumed by the federal government. This was under the impression that it would bring the states closer to the national government. …show more content…
Paper money issued during the Continental Congress and Articles of Confederation had no value.
Depositors would leave large amounts of gold and silver coins in their bank accounts for safekeeping. In exchange the coins, depositors would be given bank notes that showed that amount had been deposited. People wouldn’t withdraw their gold and silver coins because they knew that it had guaranteed value in the vaults and sellers would accept bank notes as funds. But since the states could set the value of the gold and silver, bank notes were not equal in value from state to state. With a national currency, bank notes had the same value because of equal values in the gold and silver coins that backed them.

The National Bank of the United States not only set equal currency values, but created profit. Through public stock offering, private investors could purchase shares by buying three fourths of the share in government bonds. This allowed the bank to receive a consistent flow of interest payments. This was popular to investors because they had a small chance of losing money and a high chance of gaining money. The government was also able to take out loans, usually when taxes were low. The constant circulate of taxes being deposited and loans being taken out helped create
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