Alexander Hamilton And The Fisheries Debate

Fresh of a Revolutionary War victory in 1783, the economic state of America was both unstable and weak. When George Washington, America’s first president, appointed Federalist Alexander Hamilton as the first Secretary of the Treasury, pressure was mounting for him to perform. Determined and confident in his abilities, Hamilton played a primary role in revitalizing and rebuilding the infrastructure of America’s improved economy. Although many of his economic ideas and proposals were met with great controversy and opposition, Hamilton succeeded in creating the first United States bank and along the way, implemented plans such as improving credit, increasing taxation, and shifting the economy more into manufacturing.

Hamilton’s ideas can be

The creating in some instances a new, and securing in all, a more certain and steady demand for the surplus produce of the soil.

While Hamilton was again faced with opposition from Thomas Jefferson and James Madison, it didn’t prove to be as strong as the bank debates. Jefferson and Madison’s main objection were that the bounties recommended in the report were dangerous and despite having arguments prepared if the report ever came to the floor of congress for debate, the debate was never presented as a whole package and the opportunity for a general debate never arose. However, the fisheries debate and the tariff debate did emerge as a means of how to promote manufacturers.

The fisheries debate was based on financial compensation to cod fisheries for the duty on imported salt used to fish. Instead of paying the salt tax, the proposal was to replace the export bounty with a weight bounty paid directly to the owners of fishing ships. This proposal actually drew much opposition. William Giles questioned its constitutionality, arguing, “there is a great difference between encouragement, and granting a direct bounty.” In the end, the fisheries bill passed, showing that bounties would be met with strong resistance from the

In 1772, America’s economy largely depended on agriculture and it’s only real manufacturing activity were plantations. There were no joint-stock companies and corporations were rare. Money-lending operations, or loans, were also uncommon and there was little to no economic growth. After Hamilton passed away on 1804, the state of America’s economy had undergone enormous changes. Joint-stock banks were popping up across the nation, and United States bonds and stocks were actively being traded. Public credit also received a huge boost and a standard currency, the U.S dollar, had been created. Hamilton’s short-term effect on the American economy was blatantly obvious. Tariffs encouraged domestic manufacturing, the national bank allowed for loans and provided the government with more money to spend, and the value of America’s public credit rose rapidly. Most importantly, Hamilton allowed the economy to begin taking steps towards becoming