What was Alexander Hamilton’s plan for the Economy?

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Pgs. 238-242

Hamilton’s Basic Economic Plan

1. Deal with the National Debt

2. Gain Revenue for the United States

3. Stabilize the U.S. Banking system

1. Deal with the National Debt

• The United States owed 11.7 million to other countries and 40.4 million to citizens

• Hamilton wanted to pay off debt to foreign countries first

• Gradually repay debt to citizens who bought bonds– Bondholders who sold their bonds would lose out on $

• The federal government would absorb each states debt.– Only if capital moved farther south

2. Gain Revenue for the United States

• Pass a high tariff to both bring in money and help American manufactures and cause Americans to buy American made goods

• Promote the creation of new American business that would compete with European manufacturing

3. Stabilize the U.S. Banking system

• Create a national bank for the government to deposit money to– No specific power given to the federal

government to create a bank in the Constitution

• Create a National Mint to issue own money

• 20 year trial • Each state start its own bank