Villainous Business

Alexander Hamilton is famous for his Report on Public Credit, the speech that told the government and the new states how they could get out of debt. His words changed the tides and sparked controversies among people who did not know whether to trust him or to turn away.          

From the beginning of his career as treasury secretary, he was a hard working man. It did not take too much time for him to figure out that America was in serious money trouble after the war. His first vision was to create an alliance with Britain; after all they were just starting out as a new country. He thought that they could slowly but surely become less dependent on Britain and be self-sufficient. It was said that, "Hamilton had already staked out a position as the administration's most influential figure on foreign policy." 

At that time, they were in $79 million dollars of debt. The interest rates had increased and taxes were piling up on the citizens. Hamilton reassured the government that this debt was "the price of liberty." And indeed it was. The people trusted the government to do what they needed to get them out of debt. A lot of the money was going to war veterans payed in an IOU and many other people invested in bonds, but Hamilton was confident that these bonds would increase and return to their original value. 

"Hamilton laid the foundations for America's future financial preeminence."

He continued in his financial progress, insuring the survival and stability of the government. To pay back the debt, he knew that taxes must increase but not depress the people that it inflicted. Hamilton came up with a way to "entice domestic creditors" and gave them payment options to which they could fit to their liking and in result, have investors be paid and part of the debt problem relinquished.

In one last attempt, Hamilton proposed a 'sinking fund' which led to one of his main budget plans in his Report on Public Credit. It set up five percent of the debt each year until it eventually was paid off. When released, it would change the way the government would handle the debt and how the people would respond to Hamilton. One would think that his solution was simple. It was forward and direct, and was a well-oiled economic machine.

Some of his solutions, though, started some divisions between the north and south. He looked to his friend, Madison, for his support to back up his debt report. Instead, he attacked Hamilton's plan, thus beginning the two-party system in America. As the abolition for slavery movement became a bigger case, Madison was torn between his sympathy toward the slaves and the fear of an uprising from the southerners. Hamilton continued to fight, both for the abolition of slavery and for the continuance of his debt fund. He believed that with his plan, there will no longer be a need for slaves, as it was a horrible way to acquire their money.

Not all of this was good for Hamilton. Some of this publicity hurt his position as treasurer or made him the laughing stock of the people. He knew what was needed of him at that time and needless to say he accomplished the start of a new order to end America's debt.