Great! We got a country!
Now… What do we do with it?
?
Lets figure out this money thing…
Alexander Hamilton, Washington's
secretary of the treasury, wanted
to get American off to a sound
financial start….
Lets figure out this money thing…
Hamilton’s Plan: Assumption
Pay off our old debts!
(Old Govt. debts and state debts)
South had already paid most of its debt off...
stay tuned!
Congress Agrees!
Why?
Lets figure out this money thing…
Hamilton’s Plan: National Bank
Stabilize economy, make it easier
for businesses, and deal with govt.
money.
(Wealthy investors owned 80% of
bank)
(Created in 1791 by Congress)
Lets figure out this money thing…
• Hamilton’s Plan: Protective Tariffs
Protects domestic (U.S.) businesses from
foreign competition (Britain, France)
• NOT approved by Congress although similar
measures were passed eventually
Lets figure out this money thing…
Hamilton’s Plan: Washington, D.C.
Build it!
Donated land from Maryland and Virgina
Lets figure out this money thing…
Hamilton’s Plan: Excise Tax
A tax on consumption of a particular good =
WHISKEY!
Raise $ for govt and proved the govt could
tax! (trouble brewing)
Hamilton’s Plan: What do you think?
• VERY controversial
• Encouraged the wealthy
to support the govt
(stable = safe for $)
• Put the country on
sound financial footing
• Some people were not
happy…
Hamilton’s Plan: Whiskey Rebellion
• 1794: Pennsylvania
farmers refused to
pay excise tax on
whiskey made from
their grain
• Washington called up
the state militias to put
it down
• Federal Govt was NO
JOKE!
• Shays?