Alexander Hamilton is one of the most influential individuals in the history of the United States economy. His reports about the public debts and the National Bank were of ultimate importance to the economy of the United States, because they made congressmen from different states start the debate on paying their state debts. The Hamilton’s reports were extremely instrumental in the American history, and they contributed to basic pillars of the US economy that exist up to date.
The Main Points
The reports included a proposal that southern states should help finance the debts of the northern states, since they were hit by the war more than other states. The reports brought about some conflict between congressmen whose states had no debts with other congressmen. Congressmen whose states had no debts argued that the Constitution of the United States had not provided for such provisions. The main points of the second report argued for the constitutionality of the World Bank. In his report, Hamilton accorded the national bank with key responsibilities such as issuing currency, meeting the government payroll and collecting the government revenue. The most noteworthy aspect in his report was making the proposed national bank a financier of the federal government (Hamilton, 1791). The reports showed Hamilton’s vision of this young nation, namely, his attempt to settle the public debts that hindered development. Also, the constitutionality of the national bank in the US has a visionary perspective.
Jefferson argued that there is no provision in the Constitution for the United States to form a national bank. He argues that regulating a bank and erecting a bank are different acts. In his argument against the constitutionality of a national bank, he scrutinized the terms used by Hamilton in order to develop his argument. In his report, there was an argument that the Constitution allows for means that are necessary and not only convenient.
Reactions to Hamilton Reports
Hamilton’s program and report could have benefited the greatest part of the population. The report received back up and was put into practice. The national bank benefited a significant part of the learned population by providing job opportunity. Thomas Jefferson and other republicans objected to the reports by Hamilton for constitutional reasons. The republicans feared the development of the national bank, because the private investors could dominate the economy and oppress farmers (Hamilton, 1970).
Motives and Legacy of Hamilton’s Reports
The Hamilton’s reports had an undoubtedly self-serving and elitist attitude, which can be articulated by the ideas that Hamilton aired in his report. Hamilton’s ideas could only be understood by a certain group of individuals who possessed some education. The ideas were complex and required high intellectual capacity. The report by Hamilton about creating a national bank was also rejected by southerners who were generally farmers (Jefferson, 1791). This occurred as a fear of the American economy of being controlled by private investors who would limit and dominate the amount of money flowing in the states. Hamilton challenged and created a precedent, when he argued that supposing state debts were applied power of the federal government. Since then, this notion of applied powers recurs on American economic issues.
In conclusion, the reports of Alexander Hamilton on the national debt and the constitutionality of the national bank were of outmost importance to the government of the United States. The reports were instrumental in raising the US as the super economic power in the world. The reports and the defenses presented by Hamilton, especially concerning the constitutionality of the national bank, are crucial in the economy of the United States. In fact, Hamilton’s reports developed precedents that have been used repeatedly over and over again. For this reason, the US remains a global economic super power.