Question

What were the 3 points of hamiltons banking plan

Answer 1

Hamilton's plan for the new country's financial system had three major parts.

The 3 points of Alexander Hamilton's banking plan were;

i)  First, to pay off the debts of the states, including war debts for the states to focus on business- He proposed that the government assume the entire debt of the federal government and the states. Hamilton planned to retire the old depreciated obligations by borrowing new money at a lower interest rate.

ii) Secondly, Hamilton proposed to gain money by placing tariffs on imported goods by offering a remarkably modern economic vision based on investment, industry, and expanded commerce. Hamilton favoured tariffs taxes on imported foreign goods. These tariffs had two purposes: one, they raised finances for the government and encouraged the growth of American industry. The government further placed the highest taxes on foreign imported goods that Americans used in large quantities to ensure a steady flow of income to the government and encourage people to buy less expensive American-made products.

iii) Create a national bank and mint where Hamilton planned to create a Bank of the United States, which would be a model of the Bank of England. The national bank had a responsibility collect taxes, hold government funds, and make loans to the government and borrowers.