What were the four major points of Hamilton's plan for a sound financial program for the US?

Answer 1

1. The Interest-Bearing Federal Bond Program: Money invested into the federal government. This increases debt, but also redefines the debt. There are two types of debt: foreign (money owed by the federal government to foreign nations) and public (money owed by the federal government to its people). We used to have foreign debt, but now we had public debt (which is the better debt to have).

2. Federal Assumption of State War Debt: The states had war debt, so the government says they will assume the debt and try to pay it off. This is to show the people that the government helps us, in response to Shay's Rebellion.

3. The First National Bank: A bank created and used by Congress to standardize financial policy for the states. This caused a dispute, and so to end the dispute, Hamilton agreed to move the national capitol from Pennsylvania down to Virginia in its own district called the District of Columbia.

4. The Hamilton Tax Plan: Tax Plan made up of two taxes: the Protective Tariff of 1789 and the excise tax on whiskey. The Protective Tariff of 1789 was a tax on imports to get Americans to buy more goods in the United States. This was because Alexander Hamilton was trying to start the manufacturing of goods in the United States. The excise tax on whiskey was a luxury tax because the people of the time drank whiskey like bottled water. This caused the Whiskey Rebellion.

Altogether, Hamilton's tax plan helped to stabilize the Treasury of the United States and was very successful in being the first financial policy of the United States.