Hamilton’s Plan Paper
Alexander Hamilton is considering by many to be the father of U.S. banking and financial system. Hamilton believed that what the United States needed was order and stability.Hamilton was tasked with establishing a financial system for the new government and dealing with domestic and foreign monetary policy, specifically repayment of the Revolutionary War debt and trade relations among the states and with European countries. In my opinion Hamilton’s plan was better for our country for several reasons.
Hamilton suggested a method of payment which is known as funding, that was a fair exchange. The method was basedon getting money by borrowing it. He thought that it is the best way to pay public debts (the money owed by the national and state government). Hamilton believed that what the United States needed was order and stability, butif you have inflation, you can not have a stability so hethought that in order to have a stability, it was necessary to end the inflation. When the government did not have enough money, Hamilton did not print more money. Instead, he went to rich people to borrow money at a high rate of interest. Of course, the money had to be paid back, but he got money to pay them back by having Congress put a big tax on whiskey. Hamilton also got money by taking land from the Indians and selling it to farmers.
Hamilton also wanted the government to get money by putting a high tariff on goods brought from England. At that time, British goods had a much higher quality than American goods. Hamilton liked American businessmen and wanted them to become rich. People were buying British goods because of their high quality. Hamilton wanted a high tariff so that British goods would be expensive and people would buy American goods. In addition, he knew that if Americans bought American goods, then American factory owners would become richer. In his view, the best way to make new federal governemnt succeed was to get…