Hamilton goals could not be achieved until the federal government solved its financial problems of revenue and credit. He believed without revenue it could not be effective and without credit the merchants had no faith on any of the other nations to pay back these debts. They would lack the ability to borrow. This posed a problem so Hamilton proposed that all $52 million of the federal debt be paid in full (or funde

He felt like putting these two policies into effect would make the government stronger and boost its power by increasing its need for revenue and making the wealthy depend on the national government instead of the states. Hamilton also proposed a series of excise taxes. There was a 25 percent levy on whiskey, to aide in government expenses.

Congress finally agreed to Hamilton's proposals, but only if there could be a permanent seat of government located in the south. Jefferson and Madison who were from Virginia wanted it to be located on the Potomac River between Virginia and Maryland. With this understanding funding and assumption was passed by Congress. In 1791 Congress approves a 20-year charter for the first Bank of the United States. The bank was responsible for holding government deposits and it would issue banknotes that would be received in payment of all debts owed to the federal government. Congress approved a limited tariff to encourage manufacturing and several excise taxes. The one on whiskey was approved.

Hamilton's plan seemed to some Americans as a threat to establish a monarchy. They felt like it promoted commerce at the expense of the farmer. During and after the Revolution the value of notes issued by the Continental Congress dropped drastically. Speculators had bought the notes for a fraction of their face value from farmers and workers. They felt like if the government redeemed the debt, speculators would profit from this. They also were upset because Congress had been

Some common words found in the essay are:
Revolution Washington, Jefferson Madison, Bank United, Continental Congress, Bank England, Federalists Hamilton's, Constitution Madison, Virginia Maryland, Alexander Hamilton, federal government, hamilton's program, jefferson madison, Hamilton Adams, funding assumption passed, encourage manufacturing, united bank, bank united, charter bank, funding assumption, excise taxes, bank bill,
Approximate Word count = 1014
Approximate Pages = 4 (250 words per page double spaced)