Final answer:
Alexander Hamilton's financial program included the federal assumption of state debts, paying government debts at full value, and the establishment of a national bank to stabilize and grow the U.S. economy following the Revolutionary War.
Step-by-step explanation:
The financial program in question was spearheaded by Alexander Hamilton, the first Secretary of the Treasury under President George Washington. Hamilton's consequential financial proposal, laid out in his 1790 Public Report on Credit, was a sweeping plan to stabilize the young United States' economy post-Revolution. This plan included assumption of state debts by the federal government, ensuring that all national and federal government debts were paid at face value, and the creation of a national bank. He envisioned a strong central government that could efficiently manage the nation's finances and believed this would cultivate loyalty and stability in a country still defining its identity. Debate around this plan was significant, with figures like James Madison expressing concerns over the centralization of power and the potential injustice it posed to states that had already paid their debts.
Despite resistance, Hamilton's financial strategy aimed to build national credit and foster economic growth. His plans also included issuing new securities and making annual interest payments. This strategy was not only to manage the immediate postwar debt but also to lay the groundwork for American industrial and economic expansion. Ultimately, Madison compromised to support the financial measures in exchange for relocating the nation's capital to the Potomac River, where Washington D.C. stands today.
The Creation of the Bank of the United States
Hamilton's report on a national bank was delivered in December 1790, proposing a Bank of the United States modeled on the Bank of England. This institution was to serve multiple purposes including issuing loans, circulating federal bank notes, and acting as a repository for government revenues. The creation of the national bank was a part of Hamilton's plan to discipline state banks that irresponsibly issued paper money and to unify the national currency.