Supporters believed that under the Articles of Confederation the government did not hold enough power. The leading figure in this party was Alexander Hamilton who had served as Secretary of Treasury for George Washington’s first term as president. Hamilton proposed the state debts that had come from the revolutionary war, which had created a national debt for the U.S. Hamilton answered this with the idea of the first bank of the United States. The main goal of the idea Hamilton had proposed, of state debts was to avoid unnecessary and possible destructive competition between state and federal governments. Which also allowed the federal government the opportunity for revenue.
As the Secretary of Treasury, Hamilton proposed his plan to revive the economy of the United States: assuming state debts and pay all of them, including interest and establishing several methods to get money to pay those debts, including the tariff law and excise tax. To better enforce these laws and to strenghthen the national economy, Hamilton proposed a bank of the United States. The bill for the bank was passed by Congress but Washington, before signing it, was not sure if it was constitutional. He called for the opinions of both Jefferson and Hamilton on the question. Hamilton strongly supported the erection of bank while Jefferson, on the other hand, argued strongly against it.
Federal Reserve Paper Michele Whitney ECO 212 July 19, 2010 Blake Bennett Federal Reserve Paper Charles A. Lindbergh Sr. once said, “This [Federal Reserve Act] establishes the most gigantic trust on Earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill” (Lindbergh, 1913, p.1). The Federal Reserve (Fed) controls and manages the United States money supply. The Feds also try to direct monetary policy, and put actions into place to follow that policy. These policies effect the country’s economy production and employment.
Hamilton convinced Congress to put a twenty-five percent excise tax on whiskey when farmers brought their grain to the distillery, which would make the price of whiskey high to the customers. The whiskey rebellion was the first real test of the federal governments power to enforce laws because the farmers did not want to pay it. George Washington ordered a large militia to meet the
As England tried to hold its grip on the becoming independent colonies, Britain was in need of a centralized colonial government that should have been established from the beginning. Due to the great distance between America and England and its inefficient policies, the colonies had a great deal of freedom. When Britain decided to enforce their influence and rule on America following the Seven Years War, there was many areas of disagreement that eventually lead to the American Revolution. Following the victory of the French and Indian War, Britain gained control of half of the continent by the scratch of a pen (94). Britain's national debt doubled during the course of the war and the cost of extended empire cause a dramatic increase in the cost of living.
Hamilton argued that since congress has been given so many monetary and fiscal powers it would be practical to create a central bank to carry them out (3). Johnson also recognizes the fact that people feared the power the central bank would have. He states in the book that farmers, businessmen, politicians and state-chartered banks viewed the bank as a giant monster standing in their way. Johnson looks at another important figure in the controversy of the central bank. He looks at Henry Clay, who was Jackson’s opponent in the 1832 election.
History 310 F Final Essay After ratification of the United States Constitution in the late 18th century, Alexander Hamilton began unveiling his economic plans for the government. Hamilton proposed the government should assume all states’ wartime debt and future federal debt should be funded through the sale of bonds (Roark, 212). Hamilton planned for a strong centralized government and for the creation of a national banking system. These economic policies certainly would not take place if a democratic leader like Andrew Jackson was around. As these policies give too much power to the government; possibly leading to corruption or aristocratic leaders.
For more than a decade before the outbreak of the American Revolution in 1775, tensions had been building between colonists and the British authorities. American colonists were angered by the actions of the British government because these measures were directed against the interest of the colonists. Some friction married the relationship between the colonies and the Britain. Britain in the wars relied not only on American enlistments also the British needed wagons and supplies, and wanted to house troops in private homes. But British often adopted coercive techniques to achieve these goals.
The American Revolution Parliamentary taxation was undoubtedly one of the greatest factors inspiring the American public to rebel in the years leading up to the American Revolution. One of the most striking examples of this kind of taxation was the Stamp Act of 1765. After the French and Indian War, England urgently needed revenues. They sought to acquire these revenues from the colonists because England believed that since they financed the war, the colonists should pay. The Stamp Act of 1765 stated that anyone of almost any profession had to pay taxes for paper documents, such as books and newspapers.
Many factors influences the American rebellion known as the American Revolution. Though political influences existed, the American Revolution was primarily an economic rebellion, because of conflict over taxation and representation in Parliament. The colonists had strong beliefs that the English government was unfair and often tyrannical. The conflicts over trade, taxes, and government representation brought about the revolution that began shaping the United States as it is