Alexander Hamilton: “First Report on Public Credit”

The chief mark that Alexander Hamilton left on the U.S. government in its early years was to consolidate power at the federal level. In this respect, he represented a point of view that contrasted sharply with that of Thomas Jefferson, who wanted to see more power in the hands of the states and individuals. Hamilton distrusted the masses, and he believed that the United States could survive only through the support of monied interests—those who had the greatest stake in the new nation. In his voluminous writings, Hamilton consistently urged this point of view. As the nation’s first secretary of the Treasury, Hamilton faced a number of challenges—not the least of which was $54 million in Revolutionary War debt owed by the federal government (and another $25 million by the states). In his “First Report on Public Credit,” submitted to Congress on January 14, 1790, Hamilton suggested paying the debt through the issuing of government bonds and further suggested that the federal government assume the debts of the states.