AP US History in 1 Minute Daily: Hamilton's Financial Plan (Day 68/309)

Welcome to today’s explanation of Hamilton’s Financial Plan in my series- APUSH in 1 Minute Daily!

Alexander Hamilton, Wikimedia Commons

One of Washington’s first tasks was to organize the federal government. He quickly established executive departments and selected men for his Cabinet. Alexander Hamilton led the Department of the Treasury and attempted to deal with the pressing financial difficulties.

An Exciseman, carrying off two kegs of Whiskey, is pursued by two farmers, 1791, Wikimedia Commons

Hamilton’s Financial Plan included several components including high tariffs to protect new industries and generate revenue. Additionally, the plan included a tax on whiskey to generate income to pay the national debt. 

Hamilton’s First Report on the Public Credit, Wikimedia Commons

Hamilton also proposed that the federal government assume all state debts, pay them off, and improve the country’s reputation abroad which would improve commercial and diplomatic relations.

Plans for the First Bank of the United States, Wikimedia Commons

The most controversial aspect of the plan was Hamilton’s call for a Bank of the United States to more efficiently manage the economy and fund the government. However, without it being explicitly authorized by the Constitution, many feared the ramifications of this increase in power.

Hamilton’s Financial Plan included several components to resolve the financial crisis plaguing the nation. However, it also contributed to domestic conflict and the development of the first political parties.

Join me tomorrow as I explain the Whiskey Rebellion in our next APUSH in 1 Minute Daily!