There was a time in 1788 where there was a plan to build a strong central government. That plan came to action when the first U.S congress were taking place to elect the first president. As a result, George Washington and John Adams were elected as the first President and first Vice President to be appointed to represent the Federalist Party. Within that timeframe, there was new executive post for the first congress created and George Washington appointed people with roles, so Alexander Hamilton was appointed secretary of treasury, Thomas Jefferson as secretary of state, Henry Knox as secretary of war.
As George Washington appointed Alexander Hamilton as the secretary of the treasury, he had a big role to play in history. He was a person that had believed that a strong federal government has what it takes to answer the country’s financial ills. From the looks of it, he was good for the job. He had experience and had the knowledge which led to create the base for the finical system for the United States, but the worst is yet to come. When Hamilton took the job, there was a big amount of federal debt. So much that it brought Hamilton to do something about it. To solve the whole debt situation, he wrote three reports offering solutions to this economic crisis.
For the first report, he brought his report on public credit. This report was designed to protect the safety of this new American republic. This report told the new republic to become “creditworthy”. In order for this to work, Hamilton would have needed as much support with meant people that are wealthy, or some type of creditor in order for the United States to be financially stable. The main plan that Hamilton had in mind to pay these debts was for the federal government to sell bonds- federal interest-bearing notes- to the public or if any creditors had any old notes, creditors were able to make a trade for the new government bonds. The point for selling bonds was backing off the government and to profit from interest payment. This plan that Hamilton did with converting notes to bonds and thinking about having the full support worked really well to fix European trust in the U.S economy since they were thought of a credit risk by European countries.
The second report was based on addressed banking by making a national bank to have a balance in the economy. The United states was running of different notes from many state banks with no reasonable law. With the report on a National bank coming into action, two things are happening. Banks will start loans to American merchants and the federal notes will be turned into money and at the same time being a storage of government profit from the sale of land.
The third and last one is the report on manufactures which talked about raising the profit. It addressed the need to increase the revenue in order to pay the interest on the national debt, which led the idea of increasing tax on American-made whiskey. It had to be done since Hamilton knew in this new version of America, he would really to focus on advancing domestic since they didn’t want to rely on imported manufactured goods.
With these reports, they all had some type of trouble or opposed these reports when it came to the people. With Hamilton’s program there was an argument in congress which led to an important person in history who opposed Hamilton report, James Madison. With the report of Manufactures, another important person in history, Thomas Jefferson. Jefferson declared that the constitution doesn’t allow of building a national bank. Alexander Hamilton had fought for what he had to do to improve on helping our economy and the main support that Hamilton had was George Washington. With the help of George Washington, Hamilton’s plan helped with the situation of being in debt or even bankrupt was turned around into brining a balance financial foundation.