dec 15, 1790 - Hamilton's Financial Program

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As Secretary of the Treasury, Alexander Hamilton devised an elaborate plan to restore the country’s financial stability and security. The plan was made up of three parts. The first consisted of clearing the nation of debts by both paying them off and assuming the states’ individual debts. The second consisted of setting tariffs and excise taxes on imported goods in order to foster the growth of American industry by making it more competitive and gather federal revenue in the process. The third consisted of creating a National Bank that could print paper money and hold the government’s funds. This plan was supported by the Northern merchants but opposed by the Southern farmers who felt disenfranchised. Thomas Jefferson led the mostly Anti-Federalist opposition against the plan, even though he supported parts of it, such as the way it handled the nation’s debt, because he felt it took power away from the states and stretched the definition of “necessary and proper” too far by creating the National Bank. However, the plan was accepted, although modified so the tariffs and taxes were not as extreme, due to a deal with Jefferson to establish the United States capital in the South by the Potomac River. It is important to note that the National Bank was privately owned and that the federal government was a shareholder in it.

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