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Not surprisingly, states with a large debt, like South Carolina, supported Hamilton’s plan, while states with less debt, like North Carolina, did not. To gain acceptance of his plan, Hamilton worked out a compromise with Virginians Madison and Jefferson, whereby in return for their support he would give up New York City as the nation’s capital and agree on a more southern location, which they preferred. In July 1790, a site along the Potomac River was selected as the new “federal city,” which became the District of Columbia.

Hamilton’s plan to convert notes to bonds worked extremely well to restore European confidence in the U.S. economy. It also proved a windfall for creditors, especially those who had bought up state and Confederation notes at far less than face value. But it immediately generated controversy about the size and scope of the government. Some saw the plan as an unjust use of federal power, while Hamilton argued that Article 1, Section 8 of the Constitution granted the government “implied powers” that gave the green light to his program.

The report on a national bank

As secretary of the treasury, Hamilton hoped to stabilize the American economy further by establishing a national bank. The United States operated with a flurry of different notes from multiple state banks and no coherent regulation. By proposing that the new national bank buy up large volumes of state bank notes and demanding their conversion into gold, Hamilton especially wanted to discipline those state banks that issued paper money irresponsibly. To that end, he delivered his “Report on a National Bank” in December 1790, proposing a Bank of the United States, an institution modeled on the Bank of England. The bank would issue loans to American merchants and bills of credit (federal bank notes that would circulate as money) while serving as a repository of government revenue from the sale of land. Stockholders would own the bank, along with the federal government.

Like the recommendations in his “Report on Public Credit,” Hamilton’s bank proposal generated opposition. Jefferson, in particular, argued that the Constitution did not permit the creation of a national bank. In response, Hamilton again invoked the Constitution’s implied powers. President Washington backed Hamilton’s position and signed legislation creating the bank in 1791.

The report on manufactures

The third report Hamilton delivered to Congress, known as the “Report on Manufactures,” addressed the need to raise revenue to pay the interest on the national debt. Using the power to tax as provided under the Constitution, Hamilton put forth a proposal to tax American-made whiskey. He also knew the importance of promoting domestic manufacturing so the new United States would no longer have to rely on imported manufactured goods. To break from the old colonial system, Hamilton therefore advocated tariffs on all foreign imports to stimulate the production of American-made goods. To promote domestic industry further, he proposed federal subsidies to American industries. Like all of Hamilton’s programs, the idea of government involvement in the development of American industries was new.

Questions & Answers

who organized the most massive attack in American History, which caused the Germans to begin to retreat in September 1918?
Jmora Reply
Is there answers anywhere to all of the critical thinking questions?
Heather Reply
What were the direct causes of the civil war
Trinity Reply
How did slavery issues effect the war
Trinity
How were politics involved
Trinity
north wanted to unify the south
Maleek
south wanted independence
Maleek
freeing slaves was just a way to recruit black soldiers to fight for north
Maleek
Lincoln couldn't let the south separate from the union , agriculture was way to valuable
Maleek
progressive reforms under Theodore Roosevelt
Karpi Reply
what was the main thing suposed to happen when the tea party
Gavin Reply
Which plan resolved the issue of representation for the U.S. Constitution?
Nichole Reply
The plan which became known as the seventeenth amendmet.
WIlliam
amendmet because not an article of bill of rights.
WIlliam
Which of the primary features of grassroots Progressivism was the most essential to the continued growth
Ren Reply
The institution of a steady currency.
WIlliam
who invented the comedy movie without soun
Sami Reply
Comedy in film ad early as 1895 in film by Louis Lumier. Utilized slapstick.
Victor
Louis Lumier
WIlliam
Comedy in film as early as late 1895, there were no film adds because pictures could not be paired or arranged with words, quotes, or small phrases. Utilized slapstick.
WIlliam
which of the following is not one of the tasks women performed during the revolution?
Donna Reply
Women were gen not involved in politics or combat
Victor
Women were generally not involved in combat, but went inside the lines however and worked as nurses
WIlliam
Which country etablished the first colonies in the americas
Alex Reply
which part of the America's? what year?
Kyle
Jamestown = England. if I had to guess that's the one you are looking for
Kyle
Spain. area of new Mexico I think.
Christie
the first encounter with Americans in this te Indian was Christopher Columbus from spain bt he not establish a colony and the first colony was Britain in Jamestown I think
Bernard
Spain, first settlement was La Navidad est on Columbus' first voyage and which was destroyed by natives by 1493. on subsequent voyages of Columbus and others, Spain colonized Carribean islands such as Cuba.
Victor
Spain its colonies would become known as new-spain.
WIlliam
in what ways did westward expansion provide new opportunities for women and african americans?\
cavausier Reply
Women were involved in establishing communities. They did a lot of work in turning roughboomtowns into more civilized places that had all the benefits of such. The West was characterized by greater freedom for women e.g. women were first granted suffrage in Wyoming and other Western states.
Victor
Women were involved in establishing new communities within the States'. They helped men turn rough boomtown into a more modern version of civilization for the westerners moving the expansion forward. These communities later provided jobs for Afro-Americans after the civil war.
WIlliam
[.../e.g Suffrage for women was first was granted in The West in Wyoming and other Western states]
WIlliam
It was not a lot of work for them their forefathers all the work actually
WIlliam
What source did the Roman Catholic church have
robbie Reply
Please clarify: do you mean what sources do they made their authority on?
Victor
They established their authority in administering their mission in a last ditch effort to convert native Americans to christianity
WIlliam
yes, what sources? sources of domesticating the Native Americans.
WIlliam
part 1 and part 2 in 2 segments
WIlliam
impact of coming of Portuguese in kenya
Brian Reply
impact of coming of portuguese
Brian
impact of coming of portuguese
Brian
introduced new crops, disrupted local trade and communication, introduced Christianity but had limited success converting locals
Victor
The coming of the Portuguese impacted farming, farmbills caused non-levys in trade, miscommunication in the two governments and our United States Enviormental Protection Agency (USEPA).
WIlliam
What was the first problem that Franklin Roosevelt dealt with during his "First Hundred Days"?
Bryan Reply
The Great Depression
wy
worst cover up! they should feel dumb! they we're trapped in, on both sides of the East and West borders of the Islamic forces, Columbus was desperate and started voyage due to the events of his time!
Abdul
The Banking Crisis
Victor
a better word for Columbus is "determined" not "desperate."
Victor
Which of the following protests was directly related to federal policies, and thus had the biggest impact in creating a negative public perception of Hoover presidency
Steven Reply
the Bonus Army
Victor
The Bonus Army.
WIlliam

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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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