Alexander Hamilton: The Most Important Political Figure In American History

Alexander Hamilton is one of the most important political figures in American history. He was famous for supporting the ratification of the American Constitution through writing several essays in the Federalist Papers. Hamilton became the first Secretary of the Treasury and funded the national debt accumulated during the American Revolution, and he instituted the first American national bank. Hamilton was also very famous and well-supported among the American people and other politicians, because he was a member of the Continental Congress. Hamilton was also an American Revolution veteran, and he was a prominent member of the Federalist Party – one of the two dominant American political parties after the American Revolution. Despite having …show more content…
In the eighteenth century, the United States was an agricultural country that exported cash crops to Europe and imported manufactured goods from Europe. Hamilton thought that remaining an agricultural economy during the age of manufacturing would limit the United States’ economic potential. Hamilton also wanted the government to protect local businesses from foreign goods through tariffs. However, despite encouraging an economic change during his lifetime, the United States would not become a major industrial power until after his death. After the War of 1812, when the United States initiated industry and manufacturing, the country learned or improved on the new technology it acquired from trade with Britain and Europe. The country was no longer left behind the competition among industrial countries. The government placed tariffs on foreign goods in order for American businesses and industry to compete with imports. The government also encouraged innovation through patents and supported the establishment of corporations through removing the need of chartering. Transportation, production, and communication became extremely efficient, and factories’ productivity grew. Wealthy capitalists who saw their wealth rocket exponentially continued to heavily invest in new technology and build more factories and warehouses. All of these factors …show more content…
In the late eighteenth century, Hamilton, who served as the Secretary of the Treasury, devised a financial plan that would enable the United States to pay its war debts and become a major trade and economic power. He believed that when the nation paid its debts by issuing bonds, it would increase the nation’s credibility and legitimacy while allowing investors to make profits. Hamilton also urged for the creation of a national financial institution, which became the First Bank of the United States in 1797. Hamilton also predicted that having a national bank prevented financial panics through having a reserve of liquid assets. The national bank created a stable common currency and enforced monetary policies to ensure the strength and flexibility of the American economy. The bank also promoted financial order. Despite success and profitability, the First Bank of the United States’ charter was not renewed in 1811. In 1816, the Second Bank of the United States was established to stabilize the economy after many financial panics following the War of 1812. However, the bank was accused for tightening credit policies and causing the Panic of 1819. The bank’s charter was not renewed. Consequently, despite having a growing economy, America was plagued with numerous financial panics and economic depressions during the nineteenth century,