During the American Revolution, congress felt the need for a stronger union, and a stronger government to defeat Great Britain. A year after America declared independence on July 4, 1776 congress had drafted the Articles on March 1, 1781 they ratified America’s first written constitution, The Articles of Confederation. The Confederation was still facing economic, political, and diplomatic problems. A group of men called the Nationalist decided to step in. They believed in stronger government to protect America’s interest and decided to meet in George Washington home back in Philadelphia.
Hamilton [then] crafted a monetary policy that undoubtedly saved the nation from ruin. Among the features of the Hamilton[‘s] plan w[as] the payment of federal war bonds, the assumption of state debts by the federal government, and the creation of a mechanism for collecting taxes.” Hamilton also very strongly pushed for the creation of a nation currency. According to ushistory.org Alexander Hamilton: “proposed a Bank of the United States… [Hamilton believed that] a central bank would help make the new nation’s economy dynamic through a more stable paper currency.” Hamilton’s economic policies were revolutionary for there time, and he enabled America to become the world power it is today. Because of this, Alexander Hamilton deserves to retain his spot on the 10-dollar bill.
He also outlined a plan to create the capital required to kick start a prosperous economy and introduced government tariffs, subsidies, and awards to encourage American Manufacturing. According to John Steele, Alexander Hamilton can take all the credit for creating an economy that went on to become one of the strongest in the world. This article discusses essential information that support my point of view. Many points in history have lead to this. In this paper I will be discussing why I believe Alexander Hamilton to be an economic genius.
Beginning in 1690 each colony had its own currency which led to many issues of exchange and the value of each currency. In 1775 the Continental Congress issued Its own paper currency to help fund the Revolutionary War and to unite the colonies with one currency, though concerns arose with counterfeiting by British in economic warfare and not being tangibly backed. Congress passed a bill to build a mint in Philadelphia in 1786 to better control the money supply. The United States officially adopted a bimetallic standard of silver and gold in 1792 with the silver to
4. How did the Great War for Empire change the relationship between England and its American colonies? The Great War for Empire, or Seven Years’ War went on between 1756 and 1763. The unfair taxation of the colonists is what sparked this war; there were also several other political and economic factors, which also played a large part. Since trade was boosted, Americans came to accumulate a large amount of debt to the British creditors.
In 1789, Alexander Hamilton took office as the first United States Secretary of the Treasury. Hamilton believed in centralized government and wanted to create ways for the nation as whole to pay off all war debts, raise government revenues, and create a national bank. Amongst many of Hamilton’s duties as Secretary of Treasury; was to formulate a financial plan to alleviate the country’s hefty debt from the Revolutionary War. He believed that since most of the war debt was incurred by the States but for the benefit of the entire nation, the debts from the war should be assumed by the federal government. Many states in the South had already repaid most of their debt and they wanted to restrict centralized power, they opposed the notion; while Northern states that were still carrying heavy debt loads supported the notion.
Great Britain went into debt after the French and Indian war causing them to have to find some way to make more revenue. In order to try to climb out of debt, Britain started to enforce new taxations and regulation such as the sugar, currency, and stamp act and the internal and external taxes (Brinkley, 112-113). With the taxations placed on the colonists there was a new found argument of “taxation without representation.” That was one of the main arguments for breaking away the Great Britain. Without that argument, the argument of the colonists separating from Great Britain might not have ever occurred. Another reason the French and Indian war helped start the oncoming American Revolution was all of the boycotts as a result of Britain trying to increase its revenue from the colonists and crawl out of debt.
France had already devoted 25% of its budget to the army and navy and about 50% to pay off the debt, the further expansion was inevitably deemed to worsen the economic situation. Britain was also in debt as a result of the wars but Britain’s highly advanced fiscal organizations such as the Bank of England was able to compact the implications via low interest rates unlike the debt in France which was financed at twice the rate of interest compared to that of Britain. The unreformed and old fashioned fiscal institutions in France’s couldn’t resolve the debt like the more modern state of Great Britain. The fiscal negligence was a crucial factor in the French Revolution, if it abandoned its participation in the wars that led France to accumulate a substantial amount of debt it may have been able to avoid the revolution that was to
Historians use these papers to find out more about what the Constitution was like back in the 1700s and 1800s. This new Constitution has also influenced many aspects is America’s modern Constitution. Alexander Hamilton was the first Secretary of the Treasury of the United States and came up with a plan to pay back America’s debt after the War. In 1789, George Washington appointed Hamilton to be the Secretary of the Treasury. Hamilton wanted a well-developed Treasury and was determined to make it one.
In the American Revolution, which took place from 1765 to 1783, had many instances of economic distress. One of these events was the Sugar Act; a tax imposed by the British to generate more revenue from the American colonists. It taxed many foreign goods, putting financial strain on the colonists. The Stamp Act did the same thing, but instead required them to pay a tax on every piece of printed paper they used. The British also passed acts that made
However, the British Government was in serious debt at the time of its extreme taxing of the colonists. National debt doubled from £75 million in 1754 to £133 million in 1763, as money to finance the war was borrowed heavily from British and Dutch bankers. (website about taxes) Because of this enormous debt, the British needed to make up for it by setting new taxes into affect. It is arguable that the debt was in part a burden of the colonists ' as the war ended to their advantage, and was undertaken upon their account. It is also debatable whether or not the colonies were obligated to help out their mother country in this way.