Founding of the National Bank essays

Founding of the National Bank essays Alexander Hamilton formally served as military aide to Washington during the Revolution. Washington later appointed Hamilton as his secretary of treasury. Congress called on Hamilton to prepare a report on the nations finances. Hamilton had many enemies, but he was a great thinker. He believed that a strong government was essential to the country. He based his belief on that from Great Britain, whose success came from its system of public finance and its supremacy in commerce and manufacturing. He had two goals to achieve. First, he wanted to use federal power to encourage manufacturing and commerce. This he believed would make the United States economically strong and be independent from Europe. Second, he wanted to link the interests of the wealthy with those of the new government. Hamilton goals could not be achieved until the federal government solved its financial problems of revenue and credit. He believed without revenue it could not be effective and without credit the merchants had no faith on any of the other nations to pay back these debts. They would lack the ability to borrow. This posed a problem so Hamilton proposed that all $52 million of the federal debt be paid in full (or funded). He also wanted the federal government to assume the responsibility for the remaining $25 million that the individual states owed. He felt like putting these two policies into effect would make the government stronger and boost its power by increasing its need for revenue and making the wealthy depend on the national government instead of the states. Hamilton also proposed a series of excise taxes. There was a 25 percent levy on whiskey, to aide in government expenses. Congress finally agreed to Hamilton's proposals, but only if there could be a permanent seat of government located in the south. Jefferson and Madison who were from Virginia wanted it to be located on the Potomac River between Virginia an ...