Alexander Hamilton's Financial Plans

Introduction

The nation's first experiment with a government bank occurred in 1791, as the new nation established its financial system. Treasury Secretary Alexander Hamilton proposed a government-run national bank to ensure the nation's money supply and help the government carry out its financial duties. During the Revolutionary War (1775-83), the colonies had experienced problems raising money to fight the war, convincing Hamilton of the need for a national bank. The bank would issue the nation's currency and loan the government money when needed. Currency took the form of paper money that was backed by gold at a set exchange ...