Alexander Hamilton was a Federalist. How does his financial plan show this?
I would point out the following ways in which Hamilton's financial plan showed that he was a Federalist:
- He wanted the national government to be able to run a debt. This would allow it to do more things than if it could not run a debt. This increases the power of the national government.
- He wanted the national government to pay the holders of Revolutionary War debt back in full. This helped rich people because they had bought up debt for less than face value. Federalists were the part of the rich.
- He wanted the government to help increase manufacturing. This showed he was a Federalist because they wanted a diverse economy whereas their opponents wanted an agrarian economy.
The Federalist Party believed in a Strong and active Central or Federal Government. Hamilton's financial plan demonstrated this by including the following:
1. Funding at part. Hamilton purposed that the government pay off it debts at face value plus interest (total of over 50 million dollars). This would establish credit for the nation. Investors and maybe even other countries would view us as a "good credit risk" and be willing to loan us money
2. Assumption- The federal government would assume all of the states' debts. This would ensure that the wealthy would work to make sure the nation succeeded. That way they would be guaranteed to get their money back. This would also make the states more loyal and dependant on the federal government
3. Founded the National Mint- to coin a national currency
4. Created the Bank of the United States- to run the financial programs.
5. Created Revenue for the government in the form of duties and excise taxes.
All of these actions created a stronger more active central government which is exactly what the Federalists wanted