This document discusses key aspects of Alexander Hamilton's plan to establish the national bank and financial system of the early United States. It describes Hamilton's proposals to have the federal government assume states' Revolutionary War debts, create the first Bank of the United States, and impose taxes on imports. It also discusses disagreements between Hamilton and Madison over state debts and between Hamilton and Jefferson over the constitutionality of the national bank.

2. This portrait by Gilbert Stuart
1796. From
www.mountvernon.org

3. Alexander
HamiltonSecretary of
the Treasury
Thomas
JeffersonSecretary of
State
Henry KnoxSecretary of
War
Edmund
RandolphAttorney General

4. Washington
appointed John
Jay the first Chief
Justice of the
Supreme Court
• Supreme Court with 6 Justices
• 3 Circuit Courts
• 13 District Courts

6. US pays debts for
both US and
states.
Create a national
bank for deposits.
Impose high taxes
on imports.

8. 1. PAYING STATE AND FEDERAL DEBT:
James Madison of
Virginia disagreed
that many
Southern states
should have to
help pay debts for
other states, since
they had already
paid their own.
Hamilton made a
compromise that
the capital of the
new nation would
move to
Washington, D.C.,
where it is today.

9. 2. FORMING A NATIONAL BANK
Jefferson said the new
bank was
unconstitutional. “It’s
not in there, so you
can’t do it,” is a strict
interpretation of the
Constitution.
Hamilton said that it
was necessary to do
this, and it fit the
Constitution loosely by
way of Article 1 Section
8’s “necessary and
proper” clause.

10. 3. The Tariff

11. WHY DID AMERICANS ALLOW HARMING TAX COLLECTORS BEFORE THE REVOLUTION, BUT NOT AFTER?