The United States of America, Part 1: 1783-1830Sparks, Edwin Erle
History
The United States of America, Part 1: 1783-1830
Sparks, Edwin Erle
United States -- History
To this indignation was added dismay when the effects of national
assumption of State obligations began to be appreciated; when creditors
who had besieged the State treasury for years found the Union satisfying
their just demands; when the evidences of national government, which
had heretofore been confined to a wandering Congress, began to appear
at every hearthstone. A realisation of these results brought from
Jefferson the complaint that he had been duped by Hamilton in the
assumption-capital bargain; that he had been "most innocently and most
ignorantly made to hold the candle for a wicked scheme."
A similar aggrandisement of the National Government was the motive,
according to the eulogists of Hamilton, which prompted him to make a
suggestion for another novelty, a United States bank. Ostensibly he
claimed that it would have the effect of bringing immediate financial
relief, as well as safeguarding the future. The arguments presented
by him to Congress for the incorporation of a bank in which the National
Government should be a stockholder were purely utilitarian. The bank
would benefit the public by offering an opportunity for the investment
of capital. It would benefit the Government by lending it money in an
emergency and by collecting its revenues. Its notes would also form
a circulating medium. The bill drawn by Hamilton incorporating such
a bank passed the Senate without material change and without a division.
One Senator from Pennsylvania, suggesting amendments to his colleague,
was informed that Hamilton's father-in-law, a Senator from New York,
had said Hamilton did not wish the bill altered. The hopeless minority
in the Senate claimed that the chances of subscribing to the proposed
bank, guaranteeing an investment at six per cent, for twenty years,
won many to its support. They also saw here another link in the chain
which Hamilton was welding about the States. The debts having been
assumed, the certificates would be accepted as subscriptions to bank
stock. Thus one measure would be made to play into another.
Public-domain text, read in full here on John Shaqi.
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