The Money Men Chapter 1 Summary

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The Money Men by: H.W. Brands
US History AP Mr. Lee 2nd Period
Student: Justin Baker

Chapter 1: The Aristocracy of Capital

Political: How did the federalists and antifederalists decide the US should run its money system?
Ideological: Should the federal government adopt its own system of making money?
Economic: The creation of a national bank that could fund a federal government.
Social: The American people were suspicious of the idea of a centralized bank.

Summary: This chapter illustrated the life and rise of Alexander Hamilton. From poverty, Hamilton used his intelligence to make it to King’s College in Colombia and eventually met our First President George Washington. As the war dragged on, Hamilton learned that money was critical to
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Economic: The southern economy was good because the British helped with the demand of cotton.
Social: The North was happy because over $830 million went to the war effort and they benefitted greatly.

Summary: The transportation of people and goods were changed by the invention of the steamboat and the railroad. Gold had been discovered in California and Australia and it came at a crucial time for the US economy and World economy. However, the US was the last place to have whole faith in gold. At this point things got worse. British capitalists, tied closely to the cotton economy of the south, and pulled from the north because spice was not very important. The government then issued fiat money and they made the creditors accept it. The people disagreed and they gave it a nick name, “not even worth a continental”. Soon the Internal Revenue Act put a tax on alcohol, tobacco, playing cards, dice, billiard tables, carriages, yachts, medicine, advertisements, manufactured and farmed goods, licenses, stamps inheritances, and dividends. This was used so the northern economy would not overheat. Henry put Chase as Treasury secretary. Jay Cooke used patriotism and capitalism to persuade his colleagues and customers to contribute to the war effort. In hours he sold $2 million in government notes. However, every day the government spends $1 million on keeping the army going. He had to think of a way to help fund the soldiers. Chase Cooke then intends to make and sell War Bonds. Many people had questions on how to pay and get there war bonds. Eventually, the seven-thirty bonds sold so fast that Cooke brought $830 million to the Union Government. His bonds sold quickly in the North and now the south as
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