Alexander Hamilton, orphaned at the age of eleven, born January 11, 1757, in the West Indies, so adept at business that at the age of twelve he was placed in charge of the trading business of the merchant Cruger in his frequent absences. His ability to express himself with the pen led him to New York to King’s College, now Columbia, where he became interested in political affairs. After the war began, Washington needed an assistant who could take over the load of correspondence, and because of his skill with the pen, Hamilton was chosen.
a broken nation
Alexander Hamilton realized that the war required money and there was none. He also understood that there must be an efficient government and that there was a flexible Confederation. He wrote long letters to members of Congress, expounding his views. After studying law, Hamilton became a brilliant lawyer and went into politics. He was alarmed at the way the Confederacy was adrift, with no central power or real money, and how the states bickered among themselves over separate finances and tariffs. Hamilton used his pen and hammered his points again and again about the importance of a strong government, a regular source of revenue, and a Constitution that grants such powers. Almost single handedly he started the Constitutional Convention. There, the others listened to him with respect, but thought his views were too strong for popular approval. The final Constitution was a compromise between the extreme views of Hamilton and the more moderate views of the others, the ratification of which Hamilton fought, writing the Federalist Papers, with Madison and John Jay, masterfully convincing reluctant states to align. .
After the ratification of the Constitution, George Washington took office as president and appointed Alexander Hamilton to head the Treasury of a bankrupt nation.
Hamilton’s views were strongly in favor of a central government, which he thought was the only way to get and keep peace and the only way to get that government was to interest the rich through their pockets. He privately added that he preferred rule by the wise, the wealthy, and the well-born, which was the complete opposite of Thomas Jefferson’s beliefs.
Hamilton Financial Plan
As treasurer, Alexander Hamilton developed a series of far-reaching measures, first, a tariff on imports and an excise duty on certain domestic products. Second, a financing system whereby outstanding debts would be collected and interest-bearing bonds issued in their place, dollar for dollar, insisting that this was the only way credit could be sustained. Despite the opposition, Hamilton forced the funding through congress.
Third, Hamilton’s plan was to establish a Bank of the United States, establish a free flow of currency, help businesses, and borrow in times of need.
The fourth part of his plan was to encourage manufacturing through government bonuses and a protection fee, which failed and set back the industrial age in the United States by at least a generation.
Formed Political Parties
Battles over Hamilton’s proposals led to the formation of the Federalist and Republican parties. Alexander Hamilton led the Federalists and Thomas Jefferson the Republicans.
Hamilton called for a nation strong at home and respected abroad. He believed in economic planning, a manufacturing economy, and elite government. Jefferson feared centralization and government intervention in private affairs, he believed that agriculture was the true foundation of liberty, and he believed in the instincts and vows of the common man.
Alexander Hamilton sculpted the financial world we live in today. In a sense, it’s Hamilton’s world. His financial schemes saved the nation from perishing. His dream of the industrial system came true.
