In the 1700’s Philadelphia was the largest city in the nation, and its capitol. It housed thousands of ordinary citizens and one who would change the world of banking. Before his time, banking was plain and not usually franchised. It put limitations of the financial future of America. Alexander Hamilton changed the normalcy of banking with one important document. This document released a high risk, and would either fail terribly or succeed greatly. Alexander took this risk in the hopes of an innovative banking system for America.
Seven years before Hamilton’s banking impact, he was first elected secretary of the treasury. Shortly after the election, he vowed to control America’s chaotic financial history. He then finalized a successful plan to fund the country’s debt and substantially lower it. On his way to financial stardom, Hamilton moved the country even further. The starting idea of the “Bank of the United States” was revolutionary to the entire nation’s backing standards.
Alexander Hamilton’s vision was to develop branches of banks all over the nation. These banks would be owned by private businessmen yet funded through the government. The investments from the federal government were said to be appraised at a total of $2 Million USD, 20% of capitol. This idea of a national bank paved the way for a paper currency where ordinary individuals, business owners, entrepreneurs, and government officials would nationally be in sync with their money.
Alexander Hamilton, with the assistance of the Massachusetts Congressman Fisher Ames, easily steered his way through the Senate. His bank bill passed January 20th of 1791. Although so, the transformation of America’s financial freedom didn’t start or finish overnight. Congressman James Madison challenged the bill, and lost. That, and the fact that the bill won both houses of congress, was a victory to Alexander Hamilton but not the completion of his idea. For his banking suggestion to become official, President George Washington would have to approve it by February 26th. Washington had a big decision to make, seeing as how he had a strong bond with Hamilton and Madison.
All ideas, even great ones, are followed by negative criticism. Some of this condemnation featured conceptual points while most of it was personal thoughts. The citizens of the southern states, valuing gold and silver, didn’t fully recognize the benefits of Hamilton. Since the South was raised on agriculture, the individuals living in this area believed America should be based upon an economy reflecting their environment.
Some labeled it as a “monopolistic monster” that would ruin the principles and honor America was built upon. They believed the new banking system had an abundance of opportunity for evil and corruptness to creep in.
Without the Alexander Hamilton’s ideas on American Banking, it would not have transformed so quickly for the better. His platform set the base for further improvements and control. The U.S. economy, political development, and national sovereignty all improved from Alexander Hamilton. He endured to put all the citizens in the country toward a great financial future, and that was what he did.
Alexander Hamilton greatly impacted American Banking. His persistence, ingenuity, and experience allowed him to be the mastermind behind the U.S. financial system, making it the beauty it is today.
Ron Durden is a freelance writer who specializes in legal topics such as Banking Law, Wrongful Death Lawsuits, Personal Injury, Intellectual Property, Criminal Defense and other related matters.