Professional Documents
Culture Documents
Hamiltonian Federalism:
Alexander Hamilton was the first secretary of Treasury and built up the
branch.
have a strong national government. His sole experience was working with
the national government and he had little affinity for the states since he had
aristocrat by birth.
power. Furthermore, the people are divided into two groups: the mob and
the elite. The elite are educated and have interest in pursuing the “public
he sat about building support for the national government amongst the
elite.
The US owed US $ 75 million in federal and state debts which were not
While originally held by farmers and soldiers, the bonds were purchased by
speculators (mostly the rich elite). Hamilton introduced his Public Credit
Funding meant assuming more debt to pay off existing debts. He proposed
that all existing national debt be brought into the government and
exchanged for face value plus back interest for new debt. This tied the elite
holding the debt to the national government. The government could service
Assumption meant that the state debts will be transferred to the national
government. This centralized the finances of the state and made the
2. Some states had already paid off their debts and were unwilling to
it further.
2. Gave the elite a stake in the government by tying their interest to the
To service the debt, new taxes were needed. The Whiskey Tax was
introduced which affected mostly Western states and involved taxing the