Hamilton’s Financial Plan
- Redemption Plan
- Report on Public Credit aimed to ensure that new and underdeveloped nation had good credit and could secure future loans
- Debts would be paid back by selling new bonds
- Gives America more credibility
- Assumption Plan
- Federal govt pays off dent of the states and to other countries both
- Ensures loyalty of states and of other nations
- Compromise
- Capital is built along Potomac river in the south
- Gained support of southern states
- Government paid off all debt
- New bonds taken out to pay off old bonds to buy the US time
Building the Nation’s Economy
- Hamilton asks congress to charter a national bank
- Jointly owned by private stockholders and the federal government
- Bank handles govt funds, loans to merchants, promotes trade, economic growth, and encourages investment
- Jeferson and Madison opposed the plan, thinking it was an overly broad interpretation of Congress’s power
- Excise tax: indirect tax on whiskey when it is shipped
- Report on Manufactures encouraged factories to open in order to strengthen the economy, and encourages americans to buy manufactured goods