He also wanted to issue new govt securities covering

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Unformatted text preview: aps Hamilton’s appointment had the biggest impact, as Hamilton had several traits that separated him from his contemporaries: (1) he was an all out Federalist [who gives a crap about the states – let’s consolidate power in the nat’l gov’t], (2) he was very cynical and saw people as being motivated by economic self-interest alone [no virtuous common good for him]. - With Hamilton’s outlook in mind, it is not surprising that, when Congress asked him to assess the public debt and come up with a plan to fix it in 1789, he came up with some controversial stuff… *Hamilton’s Financial Plan* 61 - Hamilton’s plan had several components: Report on Public Credit (1790) – Hamilton proposed that Congress assume state debts, combine them w/the nat’l debt, and redistribute the burden of the debt equally throughout the states. He also wanted to issue new gov’t securities covering unpaid interest. The opposition to these measures was lead by Madison, who objected to the Assumption Bill b/c it (1) gave the central gov’t too much power and (2) Virginia already paid. He objected to the new securities b/c he felt it was ripping off the original holders. In the end the passage of the Assumption Bill was exchanged in a series of compromises for the location of the capital [on the Potomac]. The Bank of the United States – soon Hamilton submitted another report on recommending the chartering of a nat’l bank that would be capitalized at $10 million and would mainly be funded by private investors. The bank would circulate currency and collect and lend $ to the Treasury. But the big question was – did the Constitution allow the creation of the Bank? MADISON (also Jefferson and Randolph) said: no way, if the Constitution doesn’t say you can, you can’t. Besides, the elastic clause only allows for necessary bills, and this is NOT necessary. POV of the strict constructionists. HAMILTON said in his Defense of the Constitutionality of the Bank (Feb. 1791): the Congress has all the powers it is not 62 specifically denied so if it doesn’t say you can’t you can! POV of the loose constructionists. In the end Was...
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This note was uploaded on 04/02/2014 for the course APUSH AP United taught by Professor Orban during the Fall '10 term at Harrison High School, Harrison.

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