#1: Pay off all war debt#1: Pay off all war debtHamilton presented a 3 step program to improve financesHamilton presented a 3 step program to improve finances
Year Output (GDP)
Total Population
National Debt Debt/Output (Percentage)
Debt/Population ($ per person)
1790 $240,000,000 3,930,000 $75,463,476.52 31.44 $19.20
1791 S250,000,000 4,050,000 $77,227,924.66 30.89 $19.07
1792 $270,000,000 4,170,000 $80,358,634.04 29.76 $19.27
1793 $300,000,000 4,300,000 $ 78,427,404.77 26.14 $18.24
1794 $350,000,000 4,430,000 $80,747,587.39 23.07 $18.23
1795 $420,000,000 4,560,000 $83,762,172.07 19.94 $18.37
1796 $470,000,000 4,700,000 $82,064,479.33 17.46 $17.46
The national debt of the United States, according to the Treasury Dept. Report, The national debt of the United States, according to the Treasury Dept. Report, included $40 million in domestic debt as well as $12 million in foreign debt, each included $40 million in domestic debt as well as $12 million in foreign debt, each
inherited from the Continental Congress. In addition, the thirteen states inherited from the Continental Congress. In addition, the thirteen states altogether owed $25 million from debts accrued during the American Revolution. altogether owed $25 million from debts accrued during the American Revolution.
The combined US debt, as calculated, stood at $77 millionThe combined US debt, as calculated, stood at $77 million
Bank would give Bank would give government a government a
safe place to keep safe place to keep moneymoney
Businesses would be helped through loans
Bank would issue bank notes (paper money used as currency)
#3: National bank that would serve many purposes
How should the How should the constitution be constitution be
interpreted?interpreted?
How much power How much power should the federal should the federal government have?government have?
• HamiltonHamilton believed in a believed in a loose interpretation loose interpretation of of the constitutionthe constitution• A very broad and flexible
view of power• Doing what is “necessary
and proper”
• Thomas Jefferson Thomas Jefferson and and James Madison James Madison Argued Argued for a for a strict strict interpretation interpretation of the of the ConstitutionConstitution• Constitution does not
mention a bank so government cannot create one
Whiskey Whiskey ProductionProduction
Large scale Large scale businessbusiness
• Paid tax annuallyPaid tax annually– 66¢ per gallon¢ per gallon
• Passed cost on to Passed cost on to consumerconsumer
Small scale Small scale personalpersonal
• Couldn’t pay Couldn’t pay annuallyannually– 99¢ per gallon¢ per gallon
• Didn’t sell it, Didn’t sell it, couldn’t pass cost couldn’t pass cost on to consumeron to consumer
Washington reviews the Washington reviews the troops Carlisle, troops Carlisle,
Pennsylvania September Pennsylvania September 17941794
Governor Henry Lee Governor Henry Lee (VA)(VA)
commander of the commander of the federalized militiafederalized militia