Hamilton had realized that most of the states were

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debts were specifically categorized under the ‘assumption policy.' Hamilton had realized that most of the states were dragging in paying off their debts. Thus the assumption policy was meant to ensure that the federal government takes up all the state debts and helps the states to clear their debts. Critics such as Madison and Jefferson felt that this was a way of exerting too much pressure on the federal government. The other aspect of Hamilton's economic nationalism policy was taxation. The major aim of the taxation policy was to raise revenue for the federal government. Through this revenue, the young nation would be able to run its affairs smoothly. This taxation policy was implemented in various ways. Foremost, was the introduction of the Tariff Act. This Act was mainly geared towards creating revenue through imposing excise duties on both imports and exports on only a few commodities. Excise duty on imports was high and geared towards promoting the local markets. Thus people were largely discouraged to buy products from outside the United States of America. Hamilton also introduced internal direct taxation systems. These systems aimed majorly at imposing the poll tax and property tax. These taxes were aiming at the affluent in the society since they could afford to own many properties. On the same, Hamilton sought to impose taxes on distilled alcohol. This faced a lot of criticism and finally led to a rebellion led by Jefferson which was popularly referred to as the Whisky rebellion. Hamilton's economic policy also advocated for the establishment of a National Bank of the United States of America. According to Hamilton, this bank would be a commercial
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5 bank but the largest of them all commercial banks. This National Bank of the United States of America would be responsible for issuing currency to the entire United States. In fact, Hamilton had suggested that the bank would produce gold coins but later realized that gold would be scarce. Also, the National Bank of the United States of America would accept deposits from various banks. The bank would also give short loans to the federal government. The National Bank of the United States of America was expected to operate at a national level. Finally, Hamilton suggested the investment in the industry to promote manufacturing in the United States of America. This according to Hamilton would be achieved through technological development and advancement. The enforcement of Hamilton’s economic policy raised a lot of criticism. This eventually resulted in a major change in the politics in America. Jefferson and Madison, who were majorly against Hamilton's economic policy, combined forces and formed the Republican political party Jefferson, felt that Hamilton’s assumption programme was jeopardizing the American economy. The assumption programme was putting a risk to the financial capability of the federal government. In general, Jefferson and Madison were suspicious of Hamilton’s political interests. Through the establishment of the Republican
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