30 - Alexander Hamilton, Part 2
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VOICE ONE:
THE MAKING OF A NATION -- a program in Special English by the Voice of America.
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I'm Maurice Joyce. Today, Shep O'Neal and I continue the story of Alexander Hamilton. He was the top planner and policy maker under the first president of the United States, George Washington.
VOICE TWO:
As we said in our last program, young Alexander Hamilton wanted to be a military commander. He hoped to demonstrate his bravery by fighting in a war. So, when the thirteen American colonies rebelled against Britain in the Seventeen-Seventies, he joined a militia in New York state.
It was not long before Hamilton met the commander-in-chief of American forces, George Washington. General Washington invited Hamilton to become one of his assistants.
One of Hamilton's jobs was to get money and supplies for the army. He asked the thirteen state governments. He also asked the Congress, which had little political power at that time. He got almost no help from either.
Hamilton felt the American system of government was too weak and disorganized. He did not like democracy, rule by the people. Instead, he liked aristocracy, rule by a rich upper class.
VOICE ONE:
Alexander Hamilton was a proud man. He was quick to criticize others. He even criticized George Washington. Once, during the war, he was late to a meeting with the general. Washington protested. Hamilton resigned.
Washington was sorry. He had a high opinion of Hamilton's abilities. That is why he was willing to forget the incident and appoint Hamilton to the new Treasury Department.
The job would be difficult. The new nation had to find ways to bring in money and pay what it owed. The new Constitution said the national government was responsible for re-paying the states' wartime loans.
One way to get money was to borrow it. But no one wanted to lend money to the United States unless they were sure they would get it back. So, the Congress asked Treasury Secretary Hamilton to write a report about how to build up the government's credit.
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Hamilton's report said the government must pay back the full amount of all its debts. This caused a dispute.
Many of the debts were in the form of government notes. The notes promised to pay someone for supplying food, clothing, and weapons to the rebel army. Some promised to pay soldiers for joining the army.
The notes really were worth nothing, however. The wartime Congress had no money. People who got them lost hope of ever getting re-paid. So they sold them to anyone willing to pay even part of the value.
Hamilton's plan would re-pay the full value of the notes to those who owned them last. This meant the people who first got the notes from the government would receive nothing. And the people who bought them at low cost would receive much more than they paid.
VOICE ONE:
Congressman James Madison of Virginia protested. He said the people who bought the notes at low cost should be paid. . .but not in full. Some of the money, he said, should go to those who got the notes in exchange for supplies or services.
Madison made an emotional speech in Congress. He described the situation of former soldiers forced by hunger to sell their government notes for almost nothing. He noted that the Union was established to protect the people against such injustice.
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Hamilton said the purpose of his plan was greater than simply paying debts. He said it was a way to build up the nation's credit so it could borrow money more easily in the future.
Hamilton believed that those who bought the notes had a right to earn money from them. These men took a chance that the worthless notes would be worth something, someday. The government could not deny them their profits.
Many members of Congress felt sorry for the poor soldiers and their families. Yet they voted against Madison's proposal and supported Hamilton's plan.
VOICE ONE:
Hamilton's plan raised old fears. The agricultural south was sure he was trying to make the industrial north more powerful. Hamilton did not deny this. His purpose was to strengthen the nation. He believed all areas would be helped if industry and commerce were stronger.