Alexander Hamilton Decision Making

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After winning a the American Revolution in 1775 the United states had several pressing issues first and foremost was the debt, Fifty four million dollars worth including interest. Secondly, paper currency issued by the Continental Congress was useless and Foreign aid was largely nonexistent. To make matters worse the government wasn’t able to collect taxes due to a loophole in the articles of confederation, the predecessor to the American Constitution. Alexander Hamilton, influential war hero and world renowned economist, was told to create a plan. This plan couldn’t divide the already tense South as they feared the North wanted to get the politically edge. Eventually, the bill was passed with an oath to move the capital to the banks of the …show more content…

His first policy called for the assumption of state debts which would lower interest rates and combine a manageable debt figure. Secondly, his program called for a national bank, which would keep and manage state and federal debts. And finally, his famous report of Manufactures set up the basic building blocks for manufacturing. Although Hamilton's economic policies were largely accepted during his time, many presidents found the central banking system ineffective or heathonous. President Jackson despite being the first and primary aggressor against the central bank wasn’t the only one who thought the Federal Reserve was “out of line”, Presidents Lincoln, Johnson, Chester Arthur, Mckinley, Roosevelt, Eisenhower and even Kennedy all opposed the idea of having a central banking system (Remmi, 1967). Central banking has been a problem with Andrew Jackson ever since he started office completely cutting off funding as soon as he became president. Jackson vetoed the recharter bill and eventually, the charter expired in 1836. But why is the Central banking system such a topic of debate during Jackson's presidency and why do we even need a central bank today? In this paper, I plan to shed light on these questions and figure out what was Jackson’s problem with the banking

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