Alexander Hamilton and His Financial Reports

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Alexander Hamilton was a founding father of the United States. Throughout his lifetime, he has accomplished many goals within the government. The country owed millions in debt due to the Revolutionary War. Alexander Hamilton, the secretary of treasury, had created a set of controversial plans and programs in hopes of settling the financial crisis. Theses plan were very essential because they would restore the nation’s credibility and bring in good relations with foreign countries. However the main obstacle was whether they were constitutional. Alexander Hamilton’s financial program was constitutional because his plans were under “implied” powers which permitted Hamilton to create such programs to resolve the countries financial problems.

            Hamilton wanted to pay back those who fought in the Revolutionary War and held bonds. This act was constitutional because he wanted to pay back those who held the certificates. The opposition felt that they should not be paid in full face value because a lot of the bonds were no longer in the hands of the original owners such as soldiers, farmers, and merchants. Instead the speculators bought them at extremely low prices. Hamilton felt that whether the bonds were held by the speculators or not they had to be paid. This was constitutional because it assured the rights of whoever owned the bond to be paid.

            The establishment of the first national bank created a lot of debate on whether it could be created based on the constitution. Jefferson felt that it should not be created because an establishment of a bank was never mentioned in the constitution while Hamilton argued that it would be under “implied” powers. Hamilton was correct because in Section 1, Article 8 of the Constitution it says the Congress shall have powers, “To lay and collect Taxes, Duties, Imposts and Excises, to pay for the Debts and provide for the common Defense and general Welfare of the United States.” This would allow the creation of a bank because it would allow a safe place for the government to collect taxes. The collected taxes would be used to pay for the debts owed to foreign countries and to its citizens.

 The tax on distilled spirits caused an up roar and ultimately a rebellion from the southern states. They felt that it should not be allowed. In general, it was absolutely allowed because the Constitution granted the government to impose taxes on any items they wished. Also, under Section 1, Article 8 it allows the government to impose and collect taxes for the general welfare. As a result, Congress had no problem in passing and executing this law.

Alexander Hamilton’s plans were created in hopes of settling the financial debt. Hamilton’s first program wanted to pay for those who owned the bonds whether they were owned by the original owners or speculators because the government assured that it would be paid. The national bank had been a great success and helped pay off much of its owed debt. The taxes on distilled spirits were constitutional because the new constitution allowed the government to tax on any items they want. Hamilton’s financial program saved the country and debt while following the boundaries of the constitution.