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Analyzing Alexander Hamilton's Financial Crisis

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After the American Revolution, the United States found itself in a big financial hole. The country found economic trouble both inside the country and internationally. The U.S. had accumulated a massive amount of debt in addition to angering their revolutionary allies. Federalist Alexander Hamilton was named by President George Washington as the first Secretary of the Treasury. Hamilton was tasked with not only solving the nation’s financial difficulties, but also to put the economy in a position to succeed in the long term. The result of this is Hamilton’s Financial Plan. Hamilton’s Financial Plan called for the full repayment of national debts and restore the United States’ credit, the creation of a national bank, the development of a national currency, and the growth of the American manufacturing industry. Perhaps the greatest burden on the nation’s economy following the revolution was the staggering debt the country had incurred. Hamilton’s research revealed that this debt stood at $54 million. This debt accumulated not only as a result of loans taken from foreign countries, but also government certificates issued to soldiers and citizens promising compensation after the end of the revolution. Hamilton’s recommendation for the foreign …show more content…

Hamilton reasoned that taking advantage of the country’s rich natural resources would allow the U.S. to eliminate its dependence on importing European manufactured goods. Hamilton concluded that government intervention would allow America to become self-dependent quicker than if the manufacturing industry was left to develop on its own. Even though the recommendation had stiff resistance, Congress eventually adopted the policy and Hamilton set the nation on a path to become a manufacturing

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