Alexander Hamilton Research Paper

The colonies of America in the 1700’s desperately needed a financial system, and thanks to Alexander Hamilton they were about to get one. This point in history was a major turning point in history and a huge accomplishment for the US. Not only did this financial system change the lives of many, it changed the course of US history. When George Washington was elected the first president of the new nation in 1789, the U.S. bank was basically bankrupt. John Adams served as the vice president, while Alexander Hamilton was selected by Washington to be the secretary of the treasury. They both believed in a strong government that would help American businesses thrive. However, Washington chose Thomas Jefferson as his secretary of state, and Jefferson …show more content…
Alexander Hamilton, Thomas Jefferson, and James Madison on the night of June 20, 1790 all met up for a long dinner where a huge compromise was made that would change history. Over the course of dinner, Madison agreed to have the federal US government take over the state's debt, and in return Alexander Hamilton agreed to promote the capital's move to Virginia. Hamilton wanted all of the colonies to come together because he knew that together the states could accomplish so much more, while Jefferson wanted all of the states to separate their governments. Hamilton's idea for the financial system was to have the federal government take over the states' debts from the Revolutionary War, which added up to around $25 million. He also proposed the creation of a national bank called the Bank of the United States where he wanted to incorporate paper money as the currency. The bank was approved in 1791 by the U.S. Congress. It accomplished paying off the country's debts from the American Revolution and provided a stable currency for the colonies of North …show more content…
One quote from “18b”. Hamilton's Financial Plan” that supports this is, “Hamilton issued a bold proposal. The federal government should pay off all confederation (state) debts at full value. Such action would dramatically enhance the legitimacy of the new central government. To raise money to pay off the debts, Hamilton would issue new securities bonds.” (US History). This quote highlights how Hamilton’s system solved most, if not all, of the colonies financial issues. This quote from US history shows how Alexander Hamilton had a brave idea to make the federal government pay off all the debts that the states had during the Confederation period. Hamilton wanted to make the new central government more powerful and respected. To get the money for this big plan, Hamilton suggested making new securities or bonds. The quote means that Hamilton thought that if the federal government took on and paid off the states' debts, it would prove that it was dependable and trustworthy. This would make the new central government even stronger and more believable, especially since it was still new and growing. Another quote from “18b”. Hamilton's Financial Plan” that shows Hamilton's system helping the colonies overcoming their financial problems is, “Hamilton’s plan, furthermore, had another highly controversial element. In order to pay what it owed on the new bonds, the federal government needed

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