THE QUINTESSENTIAL NATIONALIST
an essay by
Michael S. Gillett
1
The Quintessential Nationalist is a title few people pursue and fewer deserve. Alexander Hamilton is arguably the only American Founding Father who was a genuine embodiment of a national citizen, which is displayed through all he accomplished in life and the lasting impact he had on the United States of America. Nationalism, according to the Merriam-Webster dictionary, is defined as “loyalty and devotion to a nation,” whilst defining nationalist as “an advocate of nationalism who promotes national independence 1
and a strong national government.” Alexander Hamilton was neither born, raised, nor influenced into becoming a nationalist, rather he was transformed into one though the desires to prove his self-worth and to do was he believed was the right thing. By examining Hamilton’s life we can see that his nationalism originated during his time before joining the military. Orphaned outside of the Thirteen Colonies at a young age, he began life as a lone individual who had lost everything. Hamilton educated himself in an effort to prove he had value and not just accept his prescribed fate. During his time in the Caribbean he gained experience as a merchant whilst learning everything he could about mercantilism and economics. His ambition was tangible, however Hamilton’s sentiments toward nationalism would not start to surface until his enrollment in New York’s King’s College. It was during the two years at school when we can begin to see him developing a
1
Merriam-Webster Dictionary. Accessed December 02, 2016. https://www.merriamwebster.com/dictionary/nationalist.
2 sense of belonging and a need to stand up for what he believed, which is portrayed through his political activism. It was a mixture of the desire to prove his self-worth, an ambition for advancement, and his newfound nationalistic ideology that drove Alexander Hamilton to join the Continental army. His ambition was easily satisfied though the multitude of promotions and commissions he received, and the desire to prove self-worth translated into the honor and distinction gained through his heroism and acts of bravery on the battlefield. It was his nationalism that was truly propagated during his time as a soldier. An examination of his military career shows a sense of belonging and national obligation that was not present beforehand. It was this time in the army where Hamilton saw first hand the failures of Congress and the selfishness of the states, and where he decided he wanted to help change things for the better. After a brief stint in Congress he became fed up with its inability to act and called for a Constitutional Convention. The Constitutional Convention was Hamilton’s opportunity, as a New York delegate, to breath life into his idea of a new, stronger federal government. As luck would have it, he was consistently undermined by the rest of his delegation and was unable to effectively influence the framing of the Constitution. The period of time between the Constitution’s signing and its ratification is when Hamilton’s political craftsmanship sincerely flourished. Though his writings in the Federalist Papers, Hamilton was influential in swaying public opinion and getting the Constitution ratified. Hamilton had the idea that being a United States citizen was more important than being a state citizen because of his belief that the nation was at its strongest with citizens supporting it as a whole. He used the
3 Federalist Papers to proliferate this sense of national unity, while laying the foundations for the work he wanted to do in office. As the first United States Secretary of the Treasury, Alexander Hamilton wasted no time in bringing to life his nationalistic vision of the new nation. Every action he took in office including the massive improvement of public credit, the paying of all the nation’s debts, and the establishment of a national back, accomplish two goals. The first being the improvement of the nation’s economy, which transitions into his second and less obvious goal of furthering his nationalist agenda by strengthening the federal government and centralizing power, in turn weakening the authority of individual states. By the end of his career, a political rivalry that developed between Hamilton, Thomas Jefferson, and James Madison had fractured George Washington’s cabinet and resulted in the creation of political parties. Alexander Hamilton saw himself as an American over all else and this sense of hyper-nationalism led him to make decisions and muster popular support in creating a strong and financially secured federal government that, he believed, would use its centralized power to secure citizen’s individual rights and promote prosperity. The illegitimate son of divorcee Rachel Faucett and Scottish trader James Hamilton, Alexander Hamilton was born on the Island of Nevis, part of the Leeward Islands in British West Indies. There is controversy surrounding his birth and it is unclear whether Alexander was born January 11, 1755 or 1757. At the age of ten and shortly after his family moved to the island of St. Croix, Alexander Hamilton’s father James abandoned the family and left the island. Rachel Faucett died three years later leaving bequeathing her property to the eldest son Peter, and her vast collection of books to Hamilton, who meticulously read
4 them all. The death of both parents completely fractured the family and caused Alexander 2
to experience a period of downward mobility. Hamilton’s illegitimate birth and early descent into poverty strongly influenced the desire to prove himself though the acquisition of honor and influence for the rest of his life. His impressive cognitive abilities and early academic education, developed through reading his mother’s book collection, caught the attention of merchants on the island who befriended and employed Hamilton as a clerk. Thirteen years old at the time, this marked the beginning of Hamilton’s mastery of international currency as well as his education on the inner workings of mercantilism and economics; knowledge that he quickly soaked up and committed to memory. Hamilton’s strongest traits consisted of, a superior intellect, near limitless energy, and the fiery passion to complete any task or operation he was connected to, something that he always proved successful at. These attributes were easily visible in his work and attitude, affording sixteen-year-old Hamilton the opportunity to run the business while the 3
owner was off island for 5 months. This experience supervising and managing employees three times his age gave rise to an inflating ego and growing admiration for having authority. The following year, in 1773, merchants from the island pooled funds together and sent Hamilton to King’s College in New York, under the care of merchants who lived in the city, with hope he would return to the island a physician or other high end professional.
Jack N. Rakove, Revolutionaries: A New History of the Invention of America. (Boston: Houghton Mifflin Harcourt, 2011), 401. 2
Stanley M. Elkins and Eric L. McKitrick, The Age of Federalism (New York: Oxford University Press, 1993), 95. 3
5 In the two years he attended King’s College, Hamilton was exposed to revolutionary sentiments, including nationalism, and began to construct his own political ideologies. Alexander Hamilton got his political feet wet with the anonymous pamphlet A Full Vindication, through which he supported and defended Congress and New York merchants who were falsely accused of shady dealings. After an aggressively worded response to the first pamphlet was published, Hamilton’s political career officially started with publication of the 80 page Farmer Refuted. This new work included all of the justifications for Americans to rebel from England, as well as a comprehensive description of national 4
prosperity and the conditions it depended on.
Ambitious and looking to prove himself, Alexander Hamilton left school and joined the military once war broke out. Having developed ideals of nationalism, he felt a great sense of duty and responsibility to fight for the colonists and help create an independent nation. Hamilton was courageous, adept, and passionate, quickly proving his worth when he led members from his volunteer unit in the repossession of twenty-two cannons from a 5
battery, while under fire from a warship, in order to keep the cannons out of British hands. After a commission opened up for an artillery command, Hamilton was able to quickly teach himself all the information needed and was awarded the commission three months later on March 14, 1776. Alexander Hamilton’s ambition and strong convictions were displayed many times in combat, catching the attention of general George Washington. Washington saw that
4
Elkins, The Age of Federalism, 97.
5
Elkins, The Age of Federalism, 98.
6 Hamilton feared losing character over his own life and, seeing honor and promise in this, promoted Hamilton to the distinguished position as his aide-de-camp in 1777. Hamilton proved himself to be indispensable as Washington’s aid, however he desired a combat position through which he would attain glory and prove his worth to the fledgling nation. Hamilton’s explosive energy was primarily derived from a deep-rooted insecurity and a 6
need to excessively compensate for his lowly origins. It was during the years 1777-1781, when Hamilton served as Washington’s aid, where the two men were able to share ideological views and build a strong relationship built on camaraderie and mutual respect. Alexander Hamilton’s talent and intellect qualified him to handle committees dispatched to the camp by Congress. This contact with other politicians aided in fostering political connections, creating the impression of Hamilton as “a thoroughly political officer whose 7
views older men respected.” Even though he desired a combat role, it was in the position as a non-combat officer that Hamilton had the time and ability to seek out a spouse. On December 14, 1780 Hamilton married a New Yorker named Elizabeth Schuyler, whose wealth and advantageous family connections fulfilled his criteria for an ideal wife. Alexander Hamilton’s service in the military and close relationship with Washington helped foster a strong sense of personal obligation and national identity. As General Washington’s aide-de-camp, Hamilton was in a position to not only observe the faults and shortcomings of the Continental Congress but to also weigh in and circulate his opinions on
Joseph J. Ellis, Founding Brothers: The Revolutionary Generation. (New York: Knopf, 2002), 60. 6
7
Rakove, Revolutionaries, 405.
7 how to improve the system. Hamilton identified Congress’ lack of power as the national government’s fundamental flaw, gauging its authority based on the ability to preserve the 8
public from harm. At this point in his military career, Hamilton became disturbed by Congress’ inability to fully support the continental army and the state government's non-compliance. Alexander Hamilton, obsessed with solidifying a national identity, felt humiliated that the states would not band together in support for a common cause, even 9
when that cause was funding the army protecting them. Expanding on these nationalistic ideals, which he had wholeheartedly subscribed to, Hamilton turned his attention towards fixing the broken system. In 1782 Hamilton jumped into the political spotlight by getting elected to Congress as one of New York’s representatives. After a brief period of falling out, Washington and Hamilton rekindled their relationship, forming the spark that reignited Hamilton’s passion to effect large-scale change. In his book Revolutionaries, Jack Rakove brings up an important point that, “for both men the great lesson of the war was that Americans had to acquire ‘Continental views,’ to learn to ‘think continentally,’ to transcend ‘local prejudices.’” 10
They realized that if the weak fledgling nation were going to stand any chance of
surviving, it would need a strong centralized government, which would be able to do everything the government at the time could not. Hamilton’s dedication to a centralized power stemmed from his frustrating experience with the government under the Articles of
8
Rakove, Revolutionaries, 405.
9
Elkins, The Age of Federalism, 100.
10
Rakove, Revolutionaries, 412.
8 11
Confederation and its weak, dispersed powers. Alexander Hamilton and George Washington had both become true nationalists, thinking of the union as a cohesive nation rather than a confederation of states. Unlike Thomas Jefferson’s loyalty to his home of Virginia, Hamilton held no strong allegiance to any states due to his birth outside of the colonies. His lack of state allegiance allowed for Hamilton to easily commit to the idea of American nationalism. In 1783 Hamilton grew tired of the government’s inability to act and quit. For his final act in Congress, Hamilton played the instrumental role of calling for a Constitutional Convention to ratify the Articles of Confederation, a call that James Madison 12
helped perpetuate and actualize. At that point in time, Alexander Hamilton finished going through an ideological metamorphosis that had spanned over many years, resulting in his transformation into a hyper-nationalist. There were two main factors behind his new national identity, the first and foremost being his origin outside of the colonies and lack of state ties. Hamilton adhered to the idea of cosmopolitanism, which was derived from his island childhood, and allowed for an unobstructed view of America as one unified nation rather than a union of states. The second factor was Hamilton’s time spent in the military and witnessing the failure of the selfish state governments as well as the weak federal governments in regards to supporting the military. Alexander Hamilton, instrumental in the Constitutional Convention’s creation, was not one of the actual framers of the document. Hamilton was one of three delegates from New York; but the other two delegates were anti-federalists and voted down Hamilton in
11
Ellis, Founding Brothers, 61.
12
Walter Berns, “On Hamilton and popular government,” Public Interest no. 109 (1992): 1.
9 13
almost every vote. The success of the new government was contingent with state compliance and Hamilton worried that without it the nation would crumble. In his book, Founding Brothers: The Revolutionary Generation, Joseph Ellis indicates that Hamilton saw only two possible outcomes from that very present and serious threat: “The newly created government would either ‘triumph altogether over the state governments and reduce them to an entire subordination,’ or ‘in the course of a few years… the contests about the boundaries of power between the particular governments and the general government… 14
will produce a dissolution of the union.’” Even though the threat of states seceding from the union was minimal after the ratification of the Constitution, it was still a very possible problem that could destroy everything Hamilton worked for. Too much power for any state would lead to inter-state power struggles and the union’s dissolution, leaving the only plausible solution, in Hamilton’s mind, being the consolidation of power in a strong centralized government. September 17, 1787 was a day of great importance as it marked the date that the Constitution was signed. That day was especially significant for Alexander Hamilton as his goal of creating a strong, energetic, and productive government, had passed the initial challenge and just needed to be ratified. A more personal significance for Hamilton was that on that day he officially became an American citizen; due to writing in the document that stated all residents in the nation at the time of the Constitution’s signing officially became United States citizens. With the Constitution’s declaration of all the nation’s
13
Elkins, The Age of Federalism, 102.
14
Ellis, Founding Brothers, 77.
10 inhabitants to be “American citizens,” Alexander Hamilton’s new mission became removal of the idea that people were state citizens, instead fostering a common national identity for all Americans. According to Ellis, Hamilton was faced with the challenge that “the states and regions comprising the new nation had no common history as a nation and no common experience behaving as a coherent collective.”
15
As the quintessential nationalist, Hamilton “Devoted his years of public service to 16
the building not of a nation of states but of an American nation.” The dissemination of a national identity was not only key to the survival of the new union, but to the safety of the people in it. In Federalist Paper No. 85, Hamilton writes that without a unifying national identity and government, the population was at risk of violence either from foreign invaders that were too strong for any individual states to fend off, or domestic power 17
mongers. Alexander Hamilton feared citizens without a national identity or pride would maintain strong state allegiances, which would lead to competition between states and the 18
inevitable dissolution of the union. Hamilton believed the consolidation of power in the federal government was the best method for strengthening unification and weakening state influence. He wanted to allow the branches of government to test and push the limits to their power, serving the purpose of expanding the federal government’s authority while
15
Ellis, Founding Brothers, 11.
16
Berns, “On Hamilton”, 2.
17
Alexander Hamilton, “Federalist paper 85”
18
James F. Pontuso, “Political passions and the creation of the American national community: The case of Alexander," Perspectives On Political Science 22, no. 2.
11 19
diminishing state influence at the same time. This idea was not well liked and some states, including New York, fought against it. Even with the signing of the Constitution, the document still needed to be ratified by nine out of the thirteen states. New York, being one of the major dissenting states, was the target of an anonymous information campaign designed to persuade readers to support the Constitution’s ratification. The Federalist Papers is a compilation of essays written by Alexander Hamilton, James Madison, and John Jay in order to inform and persuade the public about different aspects of the Constitution. Alexander Hamilton, under the pseudonym Publius, outlined his view that a national government’s main priority national security, the funding of which required public credit, and that the simple taxation of 20
commerce would provide revenues to sustain credit. Hamilton used the Federalist Papers to spread the idea that the federal government’s main job was to defend the nation and it needed to raise revenue in order to do so. This was Hamilton’s way of advancing his nationalist agenda by advocating a stronger federal government while providing rationale for choosing a stronger centralized defense force over weak state regulated militias. A common theme throughout Hamilton’s Federalist Papers was the emphasis on power over pluralism; meaning that it would benefit the people more to have one strong 21
centralized power rather than multiple weaker and possibly conflicting powers.
Federalist No. 23, written by Alexander Hamilton, concerned why the people needed an
19
Rakove, Revolutionaries, 397.
20
Rakove, Revolutionaries, 415.
21
Elkins, The Age of Federalism, 103.
12 energetic government for the preservation of the union. Hamilton uses No. 23 to expound that a strong union provided a common defense for its members, preserved the public peace, regulated foreign and domestic commerce, and handled all foreign relations at the 22
federal level. That being said, only the federal government would control the nation’s military and foreign relations. This diminished state power and increases federal authority since states could no longer autonomously declare war, make alliances, or trade with foreign nations. No. 23 goes on to say “The United States should command whatever 23
resources were by them judged requisite to the ‘common defense and general welfare.”
This statement carried with it multiple meanings and implications, the first being that the federal government has the power to determine what constitutes as resources required for defense and welfare. Secondly, the federal government retains the right to determine what is considered general welfare. Thirdly, this diminished the ability of state governments to provide their own defense or welfare. All three interpretations add to the consolidation of power in the federal government and the advancement of Hamilton’s national agenda. Federalist No. 12 covers the federal government’s role regarding revenue, which is an easy and effective system of tax collection, the stabilization and regulation of currency, 24
and the stimulation of the national economy, all of which benefit every citizen. While this was a start, Hamilton envisioned a strong fiscal plan that would reinvigorate the United States economy while fostering the formation of a mercantile economy. However, nothing
22
Alexander Hamilton, “Federalist paper 23”
23
Hamilton, “Federalist 23”
24
Alexander Hamilton, “Federalist paper 12”
13 could be implemented without the powers afforded the executive branch in the yet to be ratified Constitution. The first Federalist provides a heavily biased introduction to the Federalist Papers and their purpose of encouraging ratification of the Constitution. Federalist No. 1 was full of targeted sentences such as “I am convinced that this is the safest course for your liberty, your dignity, and your happiness,” which suggests non-compliance 25
may be detrimental to your personal liberties. The Federalist Papers turned out to be a wild success and on June 21, 1788 the Constitution was ratified, marking the official birth of the United States of America’s new government. After the Constitution had been ratified and George Washington became the first president of the United States, Hamilton was nominated for Secretary of the Treasury and was swiftly confirmed by the Senate. Alexander Hamilton was the first United States Secretary of the Treasury and as such, is credited with both the revival and massive improvement of the national economy. Hamilton’s hyper-nationalist agenda of strengthening the federal government while simultaneously weakening the state governments is not only observable, but also very prevalent in all of his accomplishments while he was Treasury Secretary. Hamilton had a vision of fostering a mercantile economy that was able to tap into America’s vast potential resources and engage in the production of goods and services. He encouraged the sale luxury goods in order to incentivize workers to exert themselves and work harder, providing a surplus of goods that met the basic needs of all citizens, and this surplus could be taxed in order to create capital without demanding
25
Alexander Hamilton, “Federalist paper 1”
14 26
much from the people. Hamilton preferred a mercantile system to agrarian, which was the system of the time, because in a mercantile system there are more cash businesses and services, making it much easier for the federal government to tax. He also preferred this method because in the event of a national emergency the federal government could heavily tax luxury goods production, freeing up manpower that is needed elsewhere, such as increasing military power. The mercantile system would be used to regulate the economy for the greater benefit of the whole nation. The first and foremost objective of Alexander Hamilton was to repair public credit since it was required in order for all of his other economic plans for the nation to succeed. Once the United States had finished fighting and officially became an independent nation, other countries began to hold it to higher standards, one standard being the payment of debts accumulated during wartime. The United States was seen as weak and no other nation wished to do business with them due to the pitiful state of debt it was in, and fixing 27
the public credit was the only way that would change. On January 14, 1790 Alexander Hamilton presented his first of three major reports regarding economic policy to the House of Representatives. Focusing on supporting public credit, this first report contained an analysis of the nation’s financial standings as well as recommendations for reorganizing the nation’s debts and establishing public credit. Hamilton outlined advantages to supporting public credit that included the justification and preservation of the confidence of current
26
Elkins, The Age of Federalism, 109.
27
Ellis, Founding Brothers, 68.
15 and future creditors; the funding of new agricultural and commercial sources of revenue; 28
payment of all debts in full; promotion of the United States’ increasing respectability.
Hamilton understood the importance of good public credit, doing everything in his power to convince Congress that it was not only essential for economic improvement, but for national security as well. The support of public credit massively increased the spending power of the federal government, allowing it to enter foreign and domestic credit markets, 29
obtain vital loans, and provide a greater ability to wage war. Rakove highlights the deep bond between Hamilton and Washington when he says “the most important of those enterprises was the ability to wage war, and the officials most likely to understand the value of public credit would be those who had witnessed first hand the suffering of armies 30
in its absence.” Both men had witnessed the demoralizing effects a lack of supplies and support had on the military during times of war and would do everything in their power to prevent its reoccurrence. Hamilton recognized that in order to support public credit, the nation needed to start paying off the debts that had accumulated during the American Revolution. The assumption of state debts was Hamilton’s idea to consolidate the nation’s debt while stabilizing the economy nation wide. The term consolidation, as Ellis explains, actually generated a panic among Anti Federalists, who feared it meant, “states would be absorbed
28
Alexander Hamilton, “Public credit, pt. 1: Plan for management of revenue proposed”
29
Rakove, Revolutionaries, 400.
30
Rakove, Revolutionaries, 400.
16 31
by the new federal government.” Assumption of state debts is one of the many methods Hamilton used to advance his nationalist agenda of strengthening the federal government. By assuming all of the states’ debts, the federal government would form capital and increase its sovereignty over the states by eliminating their ability to seek foreign loans, 32
which undermined their authority. Most states had accumulated debt through foreign and domestic creditors during the Revolutionary War. Consolidating all debts and paying them off from a single source ensured that the interest rates would not fluctuate and could be regulated.
33
Assumption of the states’ debts by the federal government sparked a controversy among the nation’s leaders, specifically prominent anti-federalists such as James Madison and Thomas Jefferson. Madison made a valid argument that it was unfair for every state to pay the same amount for assumption since many southern states, especially his home of Virginia, had already made huge strides towards paying off their debts and did not want to be held accountable for everyone else. Ellis illuminates another reason for Madison’s distrust in Hamilton’s plan for assumption. “Under the guise of doing the states a favor by assuming their debts, the federal government was implicitly, even covertly, assuming 34
sovereign authority over the economies of all the states.” Madison recognized that
31
Ellis, Founding Brothers, 59.
32
Alexander Hamilton, “National Bank” 9
33
Hamilton, “Public credit”
34
Ellis, Founding Brothers, 58.
17 permitting the executive branch to have power over regulating the economy aided Hamilton’s objective of consolidating power and strengthening the federal government. Alexander Hamilton’s plan of assumption was held up in Congress until he and James Madison were able to agree on a compromise, which happened to be brokered at a dinner party hosted by Thomas Jefferson. The compromise held that the federal government would assume all states’ debts under two conditions, the first being that the nation’s capital be moved from New York to a location on the Potomac River, which was favored by southern states. The second condition of the compromise also benefitted southern states and concluded that states who had started paying back their debts before assumption would be required to pay less than others. This compromise was a significant event in Hamilton’s political career not only because it was politicking at his best, but also his willingness to make sacrifices was proof that he was fully committed to advancing the nation’s economy. Hamilton’s willingness to sacrifice for the greater good of the nation is evidence toward his being the quintessential nationalist. Once the political crisis had been averted and states’ debts were assumed, Hamilton turned to paying off the rest of the nation’s war debts, specifically securities and I.O.U.s. During the Revolutionary War, Congress proved unable to support the military due to having no taxation powers, transferring the responsibility to the states. When the colonies were not able to raise enough revenue, the armies would confiscate supplies from colonists in exchange for securities. These securities, commonly known as I.O.U.s, were proof that a certain amount of money was owed to whoever was in possession, allowing for them to be traded or used as a form of currency. These securities were also used as
18 substitutes for soldier wages and were given to creditors until their investments could be repaid. Free from British monetary regulations, the Continental Congress along with each individual state began to print their own currencies during the war. Unfortunately these currencies depreciated quickly due to over-printing and by the end of the war they were all practically worthless. The securities depreciated along with the currencies and were only worth twenty to twenty-five percent of their original value. Alexander Hamilton understood that in order to truly improve public credit, all of the securities had to be paid back in full. Hamilton used his report on public credit to justify the paying of securities in full because it was the best way to inspire trust in creditors and combat the continued lowering of securities’ values, as well as the would-be diminished 35
public credit. His proposal for Congress to fully pay people who possessed securities gave rise to yet another political clash between Hamilton and Madison. Conflict stemmed from fact that a majority of securities were in the possession of speculators and not the original owners. Speculators were individuals who purchased securities at a fraction of their original value, from people who were in immediate need of cash, in the hopes of making a profit if the value improved. Once the debts were starting to get paid off and the economy began improving, speculators began buying more and more securities since the value was increasing. Madison believed that either speculators should only be paid a fraction of the securities original value, or that the original owners should be tracked down and paid in full. Hamilton disagreed, arguing that paying only a fraction of the securities’ value to speculators would do more harm than good to the public credit, and tracking down all of
35
Hamilton, “Public credit”
19 the original owners would require too much time and resources. He believed that paying all securities in full, regardless of who was in possession, was the only way to build trust in creditors and as an added bonus would create capital that was likely to be invested right back into the nation, stimulating the economy. With the improvement of public credit came the opportunity for more loans, which meant the federal government had the ability to borrow funds in the event of an emergency, for example a military conflict. Once public credit started to improve considerably, Alexander Hamilton moved to the next phase of his economic plan; the establishment of the first Bank of the United States. Hamilton’s second major report titled National Bank was communicated to the House of Representatives on December 14, 1790, through which he conveyed the importance and benefits of establishing a national bank. According to Hamilton, a national bank was essential to improving public credit since it continued loaning and borrowing money, facilitating collection and disbursement of government funds, and ensured a 36
quicker circulation of currency. Two obvious benefits this provided include a stable source for public loans and an increased capital for the business community to borrow from, both of which assisted in increasing the value of government bonds and in turn supported public credit. Another very important advantage Hamilton called attention to in his report was how “luxurious” the bank would be during national emergencies and times 37
of war. Any and every nation in the midst of a war needs to receive very large loans in order to support the war effort and run the country simultaneously. Having a national bank
36
Hamilton, “National Bank” 1.
37
Hamilton, “National Bank” 2.
20 provided the federal government with a large capital from which to borrow in the event of an emergency, without having to rely on foreign nations. This aspect of the national bank was significant to Hamilton and Washington due to their first hand knowledge of how detrimental the lack of supplies is for an army. At the time the United States was flooded with different precious metals and foreign currencies that were subject to fluctuations in value that originated outside of the country and made both domestic and foreign trade difficult. Hamilton organized the bank to be a secure currency exchange, allowing for the safe trade between foreign and metal 38
currencies. This was helpful in the effort to stabilize the economy but was not enough by itself. The market was still flooded with a multitude of different state currencies, and the states were still printing the near-worthless money. Hamilton put a stop to this by adding in his report that only the federal government would be allowed to print currency in the United States, which would then stabilize inflation and end the dumping of money into 39
circulation. Control over the circulation of currency proved to not only to be influential in stabilizing and improving the economy, but also is another example of Hamilton consolidating power in the federal government while undermining state governments. Establishment of the United States Mint was another endeavor accredited to Treasury Secretary Alexander Hamilton after being proposed to the House of Representatives, in his On The Establishment Of A Mint report, on January 28, 1791. The Mint establishment, or coinage act of 1792, was another first for the nation and a boon to
38
Hamilton, “National Bank” 4.
39
Hamilton, “National Bank” 5.
21 public credit as well as national economic and currency regulation. The United States had a multitude of different foreign currencies and precious metals in circulation before the Mint’s establishment, all of which had higher values than the near-worthless continental or individual state currencies. With the Mint’s establishment came the creation of the dollar, which was established as the national currency and helped combat dollar value fluctuation 40
in the US. As a reference for the currency values of the time, 100 pounds British sterling 41
was equally valued to 166 and 2/3 pounds Pennsylvania currency. When the national currency was being created, there was debate over whether to value it based off of gold, silver, or possibly some other metal. It was determined that the dollar would be the base 42
value from which gold and silver values would be based off of. Hamilton understood that for the national currency to gain dominance and circulate well in the United States, the 43
other foreign currencies needed to be flushed out of the nation’s circulation. A year of leeway time was given before most of the currencies were removed, excluding Spanish currency due to its high value. There was a provision added to the establishment of the Mint allotting the president a special power to keep in circulation Spanish currency for much longer period of time. While not very significant, it was another instance where Hamilton strengthened the federal government in his campaign to consolidate power.
40
Alexander Hamilton, “Establishment of Mint, pt. 1” p. 1.
41
Hamilton, “Mint”, 2.
42
Hamilton, “Mint”, 8. Hamilton, “Mint”, 9.
43
22 In a report given to the House of Representatives, Alexander Hamilton advocated for the enactment of duties and tariffs in order to collect revenue for the federal government. A duty was later implemented on both foreign and domestic spirits and wine since they were commodities that were not likely to lose demand and would present no disadvantage to 44
trade or agriculture. However lucrative the wine and spirit duty was, it was not fair for new business owners to be paying the same as businesses that had been established for quite some time. It was decided that taxing these new manufacturers was counterproductive and only “matured” manufactures were taxed, while “Duties on articles 45
of consumption were paid by the consumer.” That meant the customer would have to pay the extra tax money with each “article” they purchased, rather than the business owner, so that the owner would be able to profit more and in turn stimulate the economy. In Federalist No. 30, Hamilton elaborated on the importance of taxation and how it benefited the nation. “The usual progress of things, the necessities of a nation, in every stage of its 46
existence, will be found at least equal to its resources.” This means that the strength of a nation is contingent upon the resources it possesses. Alexander Hamilton’s economic vision for America included tapping into the country’s vast financial resources in order to strengthen the nation and the federal government. This was one more example of a federal action that benefitted both Hamilton’s nationalist agenda as well as the nation as a whole.
44
Alexander Hamilton, “Spirits, foreign and domestic: notes by Alexander Hamilton on tariffs and internal duties and collection thereof” 1.
45
Hamilton, “Spirits”, 3.
46
Alexander Hamilton, “Federalist paper 30”
23 During the Washington Administration (1789-1797), political tensions continued to rise, sparking debate and conflict between old friends Alexander Hamilton and James Madison. The two men were at an impasse in the crucial national debate over determining the size and role of the federal government, with Hamilton supporting a big and powerful federal government that had a large role in regulating the economy and Madison believing in the opposite. There were many other disagreements shared between the two, such as an agrarian or. commercial economy, whether the United States should support France or Britain, and if the federal government should regulate the economy or step back and allow it to grow naturally. In their book The Age Of Federalism, Stanley Elkins and Eric McKitrick make the argument that these fundamental differences divided so many people due to an association of debt with merchants and with the mercantile way. Virginians were especially susceptible to this since a majority had been in debt before the war and were “inseparable 47
from the Anglophobia of the Revolution.” This explains why one of the historical splitting points surrounds the 1975 Jay Treaty between England and the United States. The Treaty of Amity, Commerce, and Navigation, known as the Jay Treaty, was primarily negotiated by John Jay from terms given to him by Alexander Hamilton. Although it was finalized with terms that blatantly favored Britain over the United States, the Jay Treaty can be credited with facilitating ten years of prosperous trade during the French Revolutionary Wars, resolving issues that resulted from the Treaty of Paris, and for averting a war between the two nations. Alexander Hamilton supported the treaty for a number of reasons, all of which were for the greater good of the nation, such as promotion
47
Elkins, The Age of Federalism, 92.
24 of commerce with trade and naval powerhouse, Britain. One of the most important reasons Hamilton supported this treaty was that it avoided a war that the still growing United States might not have won, and even if they did win the conflict would serve to demolish the rebuilt public credit. This is arguably right around the time when the first political parties were created: Democratic-Republicans and Federalists. Aside from the fact that the treaty provided America with minimal benefits at best, another controversy with it was that it set a precedent for which branch of government was allowed to handle foreign policy. Many Democratic-Republicans made a fuss about the treaty being unconstitutional, which was just a cover for the real problem they faced. With Federalists consolidating power in the executive branch and Senate, and Democratic-Republicans dominating the House of Representatives, there was a power struggle as well as an imbalance. Joseph Ellis makes the argument that the two-sided debate over the meaning of the Revolutionary War and role of federal government had 48
been institutionalized in American politics through the party system. This is why Hamilton did not want the United States to support France, since at the end of the revolution when the survivors could not agree on what they all fought for, more violence 49
would brake out. This desire for the United States to side with England, its former enemy,
48
Ellis, Founding Brothers, 15.
49
Berns, “On Hamilton”, 3.
25
Bibliography Berns, Walter. 1992. "On Hamilton and popular government." Public Interest no. 109: 109-113. Business Source Alumni Edition, EBSCOhost (accessed October 5, 2016). Chernow, Ron. 2004. Alexander Hamilton. n.p.: New York : Penguin Press, 2004. Demmer, Amanda C. "Trick or Constitutional Treaty? The Jay Treaty and the Quarrel over the Diplomatic Separation of Powers." Journal Of The Early Republic 35, no. 4 (Winter 2015): 579-598. MLA International Bibliography, EBSCOhost (accessed November 17, 2016). Elkins, Stanley M., and Eric L. McKitrick. The age of federalism. n.p.: New York : Oxford University Press, 1993., 1993. Milner Library Only, EBSCOhost (accessed November 17, 2016). Ellis, Joseph J. Founding Brothers: The Revolutionary Generation. New York: Knopf, 2002.
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Hamilton, Alexander. and Treasury Department. 1795. "Public credit, pt. 1: Plan for management of revenue proposed by Alexander Hamilton." 19p. LexisNexis U.S. Serial Set Digital Collection, EBSCOhost(accessed September 14, 2016). Hamilton, Alexander. 1791. "Establishment of Mint, pt. 1: Plan of Alexander Hamilton." 10p. LexisNexis U.S. Serial Set Digital Collection, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander, and Treasury Department. 1792. "Spirits, foreign and domestic: notes by Alexander Hamilton on tariffs and internal duties and collection thereof." 8p. LexisNexis U.S. Serial Set Digital Collection, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander, and Treasury Department. 1790. "National bank, Alexander Hamilton's plan." 10p. LexisNexis U.S. Serial Set Digital Collection, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander. 2009. "Federalist paper 1" Federalist Papers (Great Neck Publishing) 1. Points of View Reference Center, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander. 2009. "Federalist paper 2" Federalist Papers (Great Neck Publishing) 1. Points of View Reference Center, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander. 2009. "Federalist paper 12" Federalist Papers (Great Neck Publishing) 1. Points of View Reference Center, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander. 2009. "Federalist paper 23" Federalist Papers (Great Neck Publishing) 1. Points of View Reference Center, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander. 2009. "Federalist paper 30" Federalist Papers (Great Neck Publishing) 1. Points of View Reference Center, EBSCOhost (accessed September 14, 2016). Hamilton, Alexander. 2009. "Federalist paper 85" Federalist Papers (Great Neck Publishing) 1. Points of View Reference Center, EBSCOhost (accessed September 14, 2016). Merriam-Webster Dictionary. Accessed December 02, 2016. https://www.merriam-webster.com/dictionary/nationalist.
27 over France, its alleged ally, marked the end of Hamilton’s political career as this was the last sacrifice he would make while in office. Of all the founding fathers, Alexander Hamilton was the Quintessential Nationalist, even more of an embodiment of the American national identity than George Washington. There are those who say Hamilton gained his nationalist values from his close friend and mentor Washington, but that would not be true; Alexander Hamilton was born to be a hyper-nationalist Secretary of the Treasury. Having been abandoned on a Caribbean island as a boy and raised by merchants, Hamilton’s childhood was teeming with mercantile experience and the desire to overcome his lowly beginnings and make something of himself. After learning the craft, he was fortunate enough to be sent to King’s College where he first began to develop a sense of nationalism and a taste for politics. Quick to join the war, Hamilton proved his worth and dedication through daring exhibitions and courageous feats on the battlefield. Catching the attention of General Washington, Hamilton was made his to aide-de-camp, quickly developing personal and professional relationships with Washington, as well as other high ranking or political figures. It was his experience in the military where Hamilton began to feel an obligation to the nation for which he fought, although he felt humiliated by the weak federal government and the states’ selfishness. Hamilton joined the Congress after he left the army, quickly becoming fed up with its lack of authority, and called for a Constitutional Convention to ratify the Articles of
Pontuso, James F. 1993. "Political passions and the creation of the American national community: The case of Alexander.." Perspectives On Political Science 22, no. 2: 70. MasterFILE Premier, EBSCOhost (accessed October 5, 2016). Rakove, Jack N. Revolutionaries: A New History of the Invention of America. Boston: Houghton Mifflin Harcourt, 2011.
28 Confederation. He had strong views on government and wanted to take a lead role in creating the new American government. However, the other two delegates from New York were anti-federalists and their constant out-voting him demoralized Hamilton and he left the convention. Even though he was not a framer of the Constitution, Hamilton was a very influential advocate and played an integral role during the ratification period, writing dozens of the Federalist Papers. Officially an American citizen, Alexander Hamilton’s nationalist ideals of unifying the nation under a strong, centralized federal government influenced his works as Secretary of the Treasury. Hamilton was able to give birth to the national economy through supporting the public credit, consolidating all of the nation’s debt, establishing the Mint, and influencing the creation of a national bank. While Hamilton’s fall from fame was not reflective of his successful record as Treasury Secretary, he remained the Quintessential Nationalist until he died. Hamilton believed in self sacrifice for the greater good and proved that through his acts of courage on the battlefield and as a politician, not being afraid to lose friends and political allies from making decisions that he felt benefitted not only the economy, but the nation as a whole. In 1792, while under investigation of financial impropriety regarding hush money he had been paying his mistress, Hamilton sacrificed his own honor, something he held sacred his whole life, in order uphold the image of his position of Treasury secretary and that of the federal government. Having no real home as a child, Alexander Hamilton was able to make one in the United States and earned the right to be an American citizen, giving his life in the pursuit of his nationalist quest to create a stronger, more perfect union.