|View single post by Joe Kelley|
|Posted: Tue Dec 11th, 2012 05:27 pm||
|Hamilton' s confessions quoted
"But Hamilton wanted to go farther than debt assumption. He believed a funded national debt would assist in establishing public credit. By funding national debt, Hamilton envisioned the Congress setting aside a portion of tax revenues to pay each year's interest without an annual appropriation. Redemption of the principal would be left to the government's discretion. At the time Hamilton gave his Report on Public Credit, the national debt was $80 million. Though such a large figure shocked many Republicans who saw debt as a menace to be avoided, Hamilton perceived debt's benefits. "In countries in which the national debt is properly funded, and the object of established confidence," explained Hamilton, "it assumes most of the purposes of money." Federal stock would be issued in exchange for state and national debt certificates, with interest on the stock running about 4.5 percent. To Republicans the debt proposals were heresy. The farmers and planters of the South, who were predominantly Republican, owed enormous sums to British creditors and thus had firsthand knowledge of the misery wrought by debt. Debt, as Hamilton himself noted, must be paid or credit is ruined. High levels of taxation, Republicans prognosticated, would be necessary just to pay the interest on the perpetual debt. Believing that this tax burden would fall on the yeoman farmers and eventually rise to European levels, Republicans opposed Hamilton's debt program.
"To help pay the interest on the debt, Hamilton convinced the Congress to pass an excise on whiskey. In Federalist N. 12, Hamilton noted that because "[t]he genius of the people will ill brook the inquisitive and peremptory spirit of excise law," such taxes would be little used by the national government. In power, the Secretary of the Treasury soon changed his mind and the tax on the production of whiskey rankled Americans living on the frontier. Cash was scarce in the West and the Frontiersmen used whiskey as an item of barter."
Reclaiming the American Revolution: The Kentucky and Virginia Resolutions and their Legacy
by William Watkins
In Convention, Richmond, Monday, June 9, 1788
"A number of characters, of the greatest eminence in this country, object to this government for its consolidating tendency. This is not imaginary. It is a formidable reality. If consolidation proves to be as mischievous to this country as it has been to other countries, what will the poor inhabitants of this country do? This government will operate like an ambuscade. It will destroy the state governments, and swallow the liberties of the people, without giving previous notice. If gentlemen are willing to run the hazard, let them run it; but I shall exculpate myself by my opposition and monitory warnings within these walls. But then comes paper money. We are at peace on this subject. Though this is a thing which that mighty federal Convention had no business with, yet I acknowledge that paper money would be the bane of this country. I detest it. Nothing can justify a people in resorting to it but extreme necessity. It is at rest, however, in this commonwealth. It is no longer solicited or advocated."
Look up Day by Day Virginia Ratification and the word ambuscade
To Alexander Hamilton from Robert Morris, 26 May 1781
"The Capital proposed falls far Short of your Idea and indeed far Short of what it ought to be, but I am Confident if this is once Accomplished the Capital may afterward be encreased to almost any Amount, to propose a large Sum in the Outsett, and fail in the Attempt to Raise it might prove Fatal, to begin with what is Clearly in our power to accomplish, and on that beginning to establish the Credit that will Meritably Command the future encrease of Capital Seems the most Certain Road to Success. I have thought much about Interweaving a Land Security with the Capital of this Bank, but am apprehensive it would Convey to the Publick Mind an Idea of Paper being Circulated on that Credit and that the Bank of Consequence must fail in its Payments in Case of any Considerable Run on it; and we must expect, that its Ruin will be attempted by External and Internal Foes."
PUBLIC LETTER TO J[OHN] BAUSKETT AND OTHERS, EDGEFIELD DISTRICT, S.C.
John C. Calhoun, November 3, 1837
"Of all the interests in the community, the banking is by far the most influential and formidable—the most active; and the most concentrating and pervading; and of all the points, within the immense circle of this interest, there is none, in relation to which the banks are more sensitive and tenacious, than their union with the political power of the country. This is the source of a vast amount of their profits, and of a still larger portion of their respectability and influence."