What are we to do

with this heavy debt?

There is but one man in the United States who can tell you; that is…

National Debt – The amount of money owed by the United States to various creditors

Robert Morris

Alexander Hamilton

Alexander Hamilton

- Born January 11, 1755 or 1757

- Political party : Federalist

- 1st Secretary of Treasury

- Revolutionary War :Battle of Harlem Heights

Battle of White PlainsBattle of Trenton

Battle of PrincetonBattle of BrandywineBattle of GermantownBattle of MonmouthSiege of Yorktown

1st Secretary of the Treasury

The United States owes about

$11.7 million to foreign countries, and around

$40.4 million to American creditors!

Bonds – Certificates that represent money owed by the government to private citizens

If the federal government doesn’t

start paying off national debts and

bonds…

Bonds – Certificates that represent money owed by the government to private citizens

Then the government will loose trust from foreign countries, our citizens,

and state governments!

1st plan – Pay foreign debt first & Gradual repay of bonds

Speculators?- Investors who buy items at low pries in the hope that the value will rise laterO

RIGINAL

BONDHOLDER

SPECULATOR

Bon

d

Bon

d

Bon

d(Keep the bond)

(Speculators buy the bond in lower price)

More profit than Original Bondholders!

Less profit than Speculators

1790

Old BondsNew&Reliable

Bonds

2nd plan – Debt Assumption Plan

If the federal government helps states with their

debts, then they’ll give greater support

to the federal government.

Alexander Hamilton

Thomas Jefferson&

James Madison

July 1790

- The House of Representatives approved the debt assumption plan- Present day Washington, D.C., was chosen as the new national capital.

Alexander Hamilton VS Thomas Jefferson

Power of the governmentCentral VS

StatesDirection of the country

Manufacturing VS

Agriculture

Debate over the Bank

Debate over the Bank

Establishing a national bank would provide a safe place to deposit

government funds and would serve as a reliable source of

loans for the government and

businesses! The power of the national bank will be limited by 20-

year charter!

Debate over the Bank

Does Constitution give Congress the power to start national bank?

Debate over the Bank

Yes! Article 1, Section 8, of the

Constitution states that Congress has the right “to make all laws which shall be necessary and

proper” for running the nation!

Alexander Hamilton VS Thomas Jefferson

Debate over the Bank

February 25, 1791

July 11, 1804 Alexander Hamilton-Aaron Burr Duel

Aaron Burr

Hamilton Grange National Memorial

Statue of Alexander Hamilton

- Alexander Hamilton was appointed as the 1st Secretary of Treasury on September 11, 1789.- Alexander Hamilton’s debt assumption plan was approved

by House of Representatives on July, 1790.- There were many arguments between Alexander Hamilton

and Thomas Jefferson; they fought over topics such as power of the government and direction of the country.- United States Congress charter the Bank of the United

States on February 25, 1791.- Alexander Hamilton got shot by Aaron Burr on his lower

abdomen during the duel on July 11, 1804, which eventually made him die on the following afternoon, July 12, 1804.