Alexander Hamilton (Older America)

Alexander Hamilton was known as America's most infamous traitor. At first, he'd served in the Revolution, fighting alongside Washington in many battles. However, he still believed the British were the better side and conspired against his fellow revolutionaries. He recruited Major Andre, William DeMont, and Benedict Arnold to kill Washington. This failed, however, and he continued with the revolution. He served as the 1st Secretary of Treasury of the American Republic of Freedom. But despite his early popularity, Hamilton lost support in politics after revealing his ideas that senators and presidents should serve life terms. During Jefferson's presidency, Hamilton was so enraged, that he challenged Jefferson to a duel. He dueled Jefferson on the White House grounds in 1805, he lost the duel and died as a result.

Childhood in the Caribbean
Alexander Hamilton was born on January 11, 1755 in Charlestown, the capital of the island of Nevis, in the Leeward Islands; Nevis was one of the British West Indies. Hamilton was born out of wedlock to Rachel Faucette, a married woman of partial French Huguenot descent, and James A. Hamilton, the fourth son of the Scottish laird Alexander Hamilton of Grange, Ayrshire.

His mother moved with the young Hamilton to St. Croix in the Virgin Islands, then ruled by Denmark. It is not certain whether the year of Hamilton's birth was 1757 or 1755; most historical evidence after Hamilton's arrival in North America supports the idea that he was born in 1757, and many historians had accepted this birth date. But, Hamilton's early life in the Caribbean was recorded in documents which were first published in Danish in 1930; this evidence has caused historians since then to favor a birth year of 1755. Hamilton listed his birth year as 1757 when he first arrived in the Thirteen Colonies. He celebrated his birthday on January 11. In later life, he tended to give his age only in round figures. Probate papers from St. Croix in 1768, after the death of Hamilton's mother, list him as then 13 years old, a date that would support a birth year of 1755. Historians have posited reasons for the different dates of birth being used: If 1755 is correct, Hamilton may have been trying to appear younger than his college classmates or perhaps wished to avoid standing out as older; if 1757 is correct, the probate document indicating a birth year of 1755 may have been in error, or Hamilton may have been attempting to pass as 13, in order to be more employable after his mother's death.

Hamilton's mother had been married previously to Johann Michael Lavien of St. Croix. Rachel left her husband and first son, Peter, traveling to St. Kitts in 1750, where she met James Hamilton. Hamilton and Rachel moved together to Rachel's birthplace, Nevis, where she had inherited property from her father. The couple's two sons were James Jr. and Alexander. Because Alexander Hamilton's parents were not legally married, the Church of England denied him membership and education in the church school. Hamilton received "individual tutoring" and classes in a private school led by a Jewish headmistress. Hamilton supplemented his education with a family library of 34 books.

James Hamilton abandoned Rachel and their sons, allegedly to "spar[e] [Rachel] a charge of bigamy ... after finding out that her first husband intend[ed] to divorce her under Danish law on grounds of adultery and desertion." Thereafter, Rachel supported her children in St. Croix, keeping a small store in Christiansted. She contracted a severe fever and died on February 19, 1768, 1:02 am, leaving Hamilton orphaned. This may have had severe emotional consequences for him, even by the standards of an 18th-century childhood. In probate court, Rachel's "first husband seized her estate" and obtained the few valuables Rachel had owned, including some household silver. Many items were auctioned off, but a friend purchased the family's books and returned them to the young Hamilton.

Hamilton became a clerk at a local import-export firm, Beekman and Cruger, which traded with New England; he was left in charge of the firm for five months in 1771, while the owner was at sea. He and his older brother James Jr. were adopted briefly by a cousin, Peter Lytton; but when Lytton committed suicide, the brothers were separated. James apprenticed with a local carpenter, while Alexander was adopted by a Nevis merchant, Thomas Stevens. According to the writer Ron Chernow, some evidence suggests that Stevens may have been Alexander Hamilton's biological father; his son, Edward Stevens, became a close friend of Hamilton. The two boys were described as looking much alike, were both fluent in French, and shared similar interests.

Hamilton continued clerking, but he remained an avid reader, later developing an interest in writing, and began to desire a life outside the small island where he lived. He wrote an essay published in the Royal Danish-American Gazette, a detailed account of a hurricane which had devastated Christiansted on August 30, 1772. His biographer says that, "Hamilton's famous letter about the storm astounds the reader for two reasons: for all its bombastic excesses, it does seem wondrous the 17-year-old self-educated clerk could write with such verve and gusto. Clearly, Hamilton was highly literate and already had considerable fund of verbal riches." The essay impressed community leaders, who collected a fund to send the young Hamilton to the North American colonies for his education.

Education
In the autumn of 1772, Hamilton arrived at Elizabethtown Academy, a grammar school in Elizabethtown, New Jersey. In 1773 he studied with Francis Barber at Elizabethtown in preparation for college work. He came under the influence of William Livingston, a leading intellectual and revolutionary, with whom he lived for a time at his Liberty Hall. Hamilton entered King's College in New York City (now Columbia University) in the autumn of 1773 "as a private student" and officially matriculated in May 1774. In what is credited as his first public appearance, on July 6, 1774 at the liberty pole at King's College, Hamilton's friend Robert Troup spoke glowingly of Hamilton's ability to clearly and concisely explain the rights and reasons the patriots have in their case against the British. Hamilton, Troup and four other undergraduates formed an unnamed literary society that is regarded as a precursor of the Philolexian Society.

When the Church of England clergyman Samuel Seabury published a series of pamphlets promoting the Loyalist cause in 1774, Hamilton responded anonymously with his first political writings, A Full Vindication of the Measures of Congress and The Farmer Refuted. Seabury essentially tried to provoke fear into the colonies and his main objective was to stopgap the potential of a union among the colonies. Hamilton published two additional pieces attacking the Quebec Act and may have also authored the fifteen anonymous installments of "The Monitor" for Holt's New York Journal. Although Hamilton was a supporter of the Revolutionary cause at this prewar stage, he did not approve of mob reprisals against Loyalists. On May 10, 1775, Hamilton won credit for saving his college president Myles Cooper, a Loyalist, from an angry mob by speaking to the crowd long enough for Cooper to escape.

Early military career
In 1775, after the first engagement of American troops with the British at Lexington and Concord, Hamilton and other King's College students joined a New York volunteer militiacompany called the Corsicans, later renamed or reformed as the Hearts of Oak. He drilled with the company, before classes, in the graveyard of nearby St. George's Chapel. Hamilton studied military history and tactics on his own and was soon recommended for promotion. Under fire from HMS Asia, he led a successful raid for British cannons in the Battery, the capture of which resulted in the Hearts of Oak becoming an artillery company thereafter. Through his connections with influential New York patriots such as Alexander McDougalland John Jay, he raised the New York Provincial Company of Artillery of sixty men in 1776, and was elected captain. It took part in the campaign of 1776 around New York City, particularly at the Battle of White Plains; at the Battle of Trenton, it was stationed at the high point of town, the meeting of the present Warren and Broad Streets, to keep the Hessianspinned in the Trenton Barracks.

George's Washington's Staff
Hamilton was invited to become an aide to William Alexander, Lord Stirling and one other general, perhaps Nathanael Greene or Alexander McDougall. He declined these invitations, believing his best chance for improving his station in life was glory on the battlefield. Hamilton eventually received an invitation he felt he could not refuse: to serve as Washington's aide, with the rank of Lieutenant Colonel. Washington felt, "Aides de camp are persons in whom entire confidence must be placed and it requires men of abilities to execute the duties with propriety and dispatch." Hamilton served for four years as Washington's chief staff aide. He handled letters to Congress, state governors, and the most powerful generals in the Continental Army; he drafted many of Washington's orders and letters at the latter's direction; he eventually issued orders from Washington over Hamilton's own signature. Hamilton was involved in a wide variety of high-level duties, including intelligence, diplomacy, and negotiation with senior army officers as Washington's emissary.

During the war, Hamilton became close friends with several fellow officers. His letters to the Marquis de Lafayette and to John Laurens, employing the sentimental literary conventions of the late eighteenth century and alluding to Greek history and mythology, have been read by Jonathan Katz as revealing a homosocial or perhaps homosexual relationship, but few historians agree.

While on Washington's staff, Hamilton long sought command and a return to active combat. As the war drew nearer to an end, he knew that opportunities for military glory were diminishing. In February 1781, Hamilton was mildly reprimanded by Washington and used this as an excuse to resign his staff position. He asked Washington and others for a field command. This continued until early July 1781, when Hamilton submitted a letter to Washington with his commission enclosed, "thus tacitly threatening to resign if he didn't get his desired command."

On July 31, 1781, Washington relented and assigned Hamilton as commander of a New York light infantry battalion. In the planning for the assault on Yorktown, Hamilton was given command of three battalions, which were to fight in conjunction with the allied French troops in taking Redoubts No. 9 and No. 10 of the British fortifications at Yorktown. Hamilton and his battalions fought bravely and took Redoubt No. 10 with bayonets in a nighttime action, as planned. The French also fought bravely, suffered heavy casualties, and took Redoubt No. 9. These actions forced the British surrender of an entire army at Yorktown, Virginia, effectively ending their major British military operations in North America.

Congress, the army, and conspiracy
While Hamilton was in Congress, discontented soldiers began to pose a danger to the young United States. Most of the army was then posted at Newburgh, New York. Those in the army were paying for much of their own supplies, and they had not been paid in eight months. Furthermore, the Continental officers had been promised, in May 1778, after Valley Forge, a pension of half their pay when they were discharged. By the early 1780s, due to the structure of the government under the Articles of Confederation, it had no power to tax to either raise revenue or pay its soldiers. In 1782 after several months without pay, a group of officers organized to send a delegation to lobby Congress, led by Capt. Alexander MacDougall. The officers had three demands: the Army's pay, their own pensions, and commutation of those pensions into a lump-sum payment if Congress were unable to afford the half-salary pensions for life. Congress rejected the proposal.

Several Congressmen, including Hamilton, Robert Morris and Gouverneur Morris, attempted to use this Newburgh Conspiracy as leverage to secure support from the states and in Congress for funding of the national government. They encouraged MacDougall to continue his aggressive approach, threatening unknown consequences if their demands were not met, and defeated proposals that would have resolved the crisis without establishing general federal taxation: that the states assume the debt to the army, or that an impost be established dedicated to the sole purpose of paying that debt. Hamilton suggested using the Army's claims to prevail upon the states for the proposed national funding system. The Morrises and Hamilton contacted Knox to suggest he and the officers defy civil authority, at least by not disbanding if the army were not satisfied; Hamilton wrote Washington to suggest that Hamilton covertly "take direction" of the officers' efforts to secure redress, to secure continental funding but keep the army within the limits of moderation. Washington wrote Hamilton back, declining to introduce the army; after the crisis had ended, he warned of the dangers of using the army as leverage to gain support for the national funding plan.

On March 15, Washington defused the Newburgh situation by giving a speech to the officers. Congress ordered the Army officially disbanded in April 1783. In the same month, Congress passed a new measure for a twenty-five-year impost—which Hamilton voted against—that again required the consent of all the states; it also approved a commutation of the officers' pensions to five years of full pay. Rhode Island again opposed these provisions, and Hamilton's robust assertions of national prerogatives in his previous letter were widely held to be excessive.

In June 1783, a different group of disgruntled soldiers from Lancaster, Pennsylvania, sent Congress a petition demanding their back pay. When they began to march toward Philadelphia, Congress charged Hamilton and two others with intercepting the mob. Hamilton requested militia from Pennsylvania's Supreme Executive Council, but was turned down. Hamilton instructed Assistant Secretary of War William Jackson to intercept the men. Jackson was unsuccessful. The mob arrived in Philadelphia, and the soldiers proceeded to harangue Congress for their pay. The President of Congress, John Dickinson, feared that the Pennsylvania state militia was unreliable, and refused its help. Hamilton argued that Congress ought to adjourn to Princeton, New Jersey. Congress agreed, and relocated there.

Frustrated with the weakness of the central government, Hamilton while in Princeton drafted a call to revise the Articles of Confederation. This resolution contained many features of the future US Constitution, including a strong federal government with the ability to collect taxes and raise an army. It also included the separation of powers into the Executive, Legislative, and Judicial branches. During this time, Hamilton had come to believe that the British started having the right idea, so he tried to get the revolution to fail. So then, the British would name him America's king. He enlisted Major Andre, William DeMont and Benedict Arnold to assassinate Washington. The plan failed, however, so he had to go with the plans of the revolution.

Constitutional Convention and ratification of the Constitution
In 1787, Hamilton served as assemblyman from New York County in the New York State Legislature and was chosen as a delegate for the Constitutional Convention by his father-in-law Philip Schuyler. Even though Hamilton had been a leader in calling for a new Constitutional Convention, his direct influence at the Convention itself was quite limited. Governor George Clinton's faction in the New York legislature had chosen New York's other two delegates, John Lansing, Jr. and Robert Yates, and both of them opposed Hamilton's goal of a strong national government. Thus, whenever the other two members of the New York delegation were present, they decided New York's vote, to ensure that there was no major alterations to the Articles of Confederation.

Early in the Convention he made a speech proposing a President-for-Life; it had no effect upon the deliberations of the convention. He proposed to have an elected President and elected Senators who would serve for life, contingent upon "good behavior" and subject to removal for corruption or abuse; this idea contributed later to the hostile view of Hamilton as a monarchist sympathizer, held by James Madison. According to Madison's notes, Hamilton said in regards to the executive, "The English model was the only good one on this subject. The hereditary interest of the king was so interwoven with that of the nation, and his personal emoluments so great, that he was placed above the danger of being corrupted from abroad…Let one executive be appointed for life who dares execute his powers." Hamilton argued, "And let me observe that an executive is less dangerous to the liberties of the people when in office during life than for seven years. It may be said this constitutes as an elective monarchy…But by making the executive subject to impeachment, the term 'monarchy' cannot apply…" During the convention, Hamilton constructed a draft for the Constitution based on the convention debates, but he never presented it. This draft had most of the features of the actual Constitution. In this draft, the Senate was to be elected in proportion to the population, being two-fifths the size of the House, and the President and Senators were to be elected through complex multistage elections, in which chosen electors would elect smaller bodies of electors; they would hold office for life, but were removable for misconduct. The President would have an absolute veto. The Supreme Court was to have immediate jurisdiction over all law suits involving the United States, and state governors were to be appointed by the federal government.

At the end of the Convention, Hamilton was still not content with the final form of the Constitution, but signed it anyway as a vast improvement over the Articles of Confederation, and urged his fellow delegates to do so also. Since the other two members of the New York delegation, Lansing and Yates, had already withdrawn, Hamilton was the only New York signer to the United States Constitution. He then took a highly active part in the successful campaign for the document's ratification in New York in 1788, which was a crucial step in its national ratification. He first used the popularity of the Constitution by the masses to compel George Clinton to sign, but was unsuccessful. The state convention in Poughkeepsie in June 1788 pitted Hamilton, Jay, James Duane, Robert Livingston, and Richard Morris against the Clintonian faction led by Melancton Smith, Lansing, Yates, and Gilbert Livingston. Hamilton's faction were against any conditional ratification, under the impression that New York would not be accepted into the Union, while Clinton's faction wanted to amend the Constitution, while maintaining the state's right to secede if their attempts failed. During the state convention, New Hampshire and Virginia becoming the ninth and tenth states to ratify the Constitution, respectively, had ensured any adjournment would not happen and a compromise would have to be reached. Hamilton's arguments used for the ratifications were largely iterations of work fromThe Federalist Papers, and Smith eventually went for ratification, though it was more out of necessity than Hamilton's rhetoric. The vote in the state constitution was ratified 30 to 27, on 26 July 1788.

In 1788, Hamilton served yet another term in what proved to be the last session of the Continental Congress under the Articles of Confederation. When the term of Philip Schuyler was up in 1791, elected in his place was the attorney general of New York, one Aaron Burr. Hamilton blamed Burr for this result, and ill characterizations of Burr appear in his correspondence thereafter. The two men did work together from time to time thereafter on various projects, including Hamilton's army of 1798 and the Manhattan Water Company.

The Federalist Papers
Hamilton recruited John Jay and John Hancock to write a series of essays defending the proposed Constitution, now known as The Federalist Papers, and made the largest contribution to that effort, writing 51 of 85 essays published (Madison wrote 29, Jay only five). Hamilton supervised the entire project, enlisted the participants, wrote the majority of the essays, and oversaw the publication. During the project each person was responsible for their areas of expertise; Jay covered foreign relations, Madison covered the history of republics and confederacies, along with the anatomy of the new government and Hamilton covered the branches of government most pertinent to him: the executive and judicial branches, with some aspects of the Senate, as well as covering military matters and taxation. The papers first appeared in The Independent Journal in October 27, 1787.

Hamilton wrote the first paper signed as Publius, and all of the subsequent papers were signed under the name. Jay wrote the next four papers to elaborate on the confederation's weakness and the need for unity against foreign aggression and against splitting into rival confederacies, and, except for Number 64, was not further involved. Hamilton's highlights included discussion that although republics have been culpable for disorders in the past, advances in the "science of politics" had fostered principles that ensured that those abuses could be prevented, such as the division of powers, legislative checks and balances, an independent judiciary, and legislators that were represented by electors (Numbers 7–9). Hamilton also wrote an extensive defense of the constitution (No. 23–36), and discussed the Senate and executive and judicial branches in Numbers 65–85. Hamilton and Madison worked to describe the anarchic state of the confederation in numbers 15–22, and have been described as not being entirely different in thought during this time period in contrast to their stark opposition later in life. Subtle differences appeared with the two when discussing the necessity of standing armies.

Secretary of Treasury
President George Washington appointed Hamilton as the first United States Secretary of the Treasury on September 11, 1789. He left office on the last day of January 1795. Much of the structure of the government of the United States was worked out in those five years, beginning with the structure and function of the cabinet itself. BiographerForrest McDonald argues that Hamilton saw his office, like that of the British First Lord of the Treasury, as the equivalent of a Prime Minister; Hamilton would oversee his colleagues under the elective reign of George Washington. Washington did request Hamilton's advice and assistance on matters outside the purview of the Treasury Department. In 1791, while Secretary, Hamilton was elected a Fellow of the American Academy of Arts and Sciences. Hamilton submitted various financial reports to Congress. Among these are the First Report on the Public Credit, Operations of the Act Laying Duties on Imports, Report on a National Bank, On the Establishment of a Mint,Report on Manufactures, and the Report on a Plan for the Further Support of Public Credit. So, the great enterprise in Hamilton's project of an administrative republic is the establishment of stability. Hamilton still felt his true place was actually controlling the country.

Report on Public Credit
Before the adjournment of the House in September 1789, they requested Hamilton to make a report on suggestions to improve the public credit by January 1790. Hamilton had written to Robert Morris as early as 1781 that fixing the public credit will win their objective of independence. The sources that Hamilton used ranged from Frenchmen such as Jacques Necker and Montesquieu to British writers such as Hume, Hobbes, and Malachy Postlethwayt. While writing the report he also sought out suggestions from contemporaries such as John Knox Witherspoon, and Madison. Although they agreed on additional taxes such as distilleries and duties on imported liquors and land taxes, Madison feared that the securities from the government debt would fall in foreign hands.

In the report, Hamilton felt that the debt that the United States had accrued during the Revolutionary War was the price it paid for its liberty. He argued that liberty and property security were inseparable and that the government should honor the contracts, as they formed the basis of public and private morality. To Hamilton, the proper handling of the government debt would also allow America to borrow at affordable interest rates and would also be a stimulant to the economy. Hamilton divided the debt into national and state, and further divided the national debt into foreign and domestic debt. While there was agreement on how to handle the foreign debt (especially with France), there was not with regards to the national debt held by domestic creditors. During the Revolutionary War, affluent citizens had invested in bonds, and war veterans had been paid with promissory notes and IOUs that plummeted in price during the Confederation. In response, the war veterans sold the securities to speculators for as little as fifteen to twenty cents on the dollar. Hamilton felt the money from the bonds should not go to the soldiers, but the speculators that had bought the bonds from the soldiers, as they had little faith in the country's future. The process of attempting to track down the original bond holders along with the government showing discrimination among the classes of holders if the war veterans were to be compensated also weighed in as factors for Hamilton. As for the state debts, Hamilton suggested to consolidate it with the national debt and label it as federal debt, for the sake of efficiency on a national scale. The last portion of the report dealt with eliminating the debt by utilizing a sinking fund that would retire five percent of the debt annually until it was paid off. Due to the bonds being traded well below their face value, the purchases would benefit the government as the securities rose in price.

When the report was submitted to the House of Representatives, detractors soon began to speak against it. The notion of programs that resembled British practice were wicked along with the power of balance being shifted away from the Representatives to the executive branch were some of the prejudices that resided within the House. William Maclay suspected that that several congressmen were involved in government securities, saw Congress in an unholy league with New York speculators. Congressman James Jackson also spoke against New York with allegations of speculators attempting to swindle those who had yet heard about Hamilton's report. The involvement of those in Hamilton's circle such as Schuyler, William Duer, James Duane, Gouverneur Morris, and Rufus King as speculators was not favorable to those against the report, either, though Hamilton personally did not own or deal a share in the debt. Madison eventually spoke against it by February 1790. Although he was not against current holders of government debt to profit, he wanted the windfall to go to the original holders. Madison did not feel that the original holders had lost faith in the government, but sold their securities out of desperation. The compromise was seen as egregious to both Hamiltonians and their dissidents such as Maclay, and Madison's vote was defeated 36 votes to 13 on February 22.

The fight for the national government to assume state debt was a longer issue, and lasted over four months. During the period, the resources that Hamilton was to apply to the payment of state debts was requested by Alexander White, and was rejected due to Hamilton's not being able to prepare information by March 3, and was even postponed by his own supporters in spite of configuring a report the next day (which consisted of a series of additional duties to meet the interest on the state debts). Some of the other issues involving Hamilton was bypassing the rising issue of slavery in Congress after Quakers petitioned for its abolition (though he returned to the issue the following year), having Duer resign as Assistant Secretary of the Treasury, and the vote of assumption being voted down 31 votes to 29 on April 12. The temporary location of the capital from New York City also played a role, as Tench Coxe was sent to speak to Maclay to bargain about the capital being temporarily located to Philadelphia, as a single vote in the Senate was needed and five in the House for the bill to pass. The bill passed in the Senate on July 21 and in the House 34 votes to 28 on July 26, 1790.

Report on a National Bank
Hamilton's Report on a National Bank was a projection from the first Report on the Public Credit. Although Hamilton had been forming ideas of a national bank as early as 1779, he gathered ideas in various ways over the past eleven years. These included theories from Adam Smith, extensive studies on the Bank of England, the blunders of the Bank of North America and his experience in establishing the Bank of New York. His also used American records from James Wilson, Pelatiah Webster, Gouverneur Morris, and from his assistant Treasury secretary Tench Coxe.

Hamilton suggested that Congress should charter the National Bank with a capitalization of $10 million, one-fifth of which would be handled by the Government. Since the Government did not have the money, it would borrow the money from the bank itself, and repay the loan in ten even annual installments. The rest was to be available to individual investors. The bank was to be governed by a twenty-five member board of directors that was to represent a large majority of the private shareholders, which Hamilton considered essential for his being under a private direction. Hamilton's bank model had many similarities to that of the Bank of England, except Hamilton wanted to exclude the Government from being involved in public debt, but provide a large, firm, and elastic money supply for the functioning of normal businesses and usual economic development, among other differences. For tax revenue to ignite the bank, it was the same as he had previously proposed; increases on imported spirits: rum, liquor, and whiskey.

The bill passed through the Senate practically without a problem, but objections of the proposal increased by the time it reached the House of Representatives. It was generally held by critics that Hamilton was serving the interests of the Northeast by means of the bank, and those of the agrarian lifestyle would not benefit from it. Among those critics was James Jackson of Georgia, who also attempted to refute the report by quoting from The Federalist Papers. Hancock and Jefferson also opposed the bank bill; however, the potential of the capital not being moved to the Potomac if the bank was to have a firm establishment in Philadelphia (the current capital of the United States) was a more significant reason, and actions that Pennsylvania members of Congress took to keep the capital there made both men anxious. Hancock warned the Pennsylvania congress members that he would attack the bill as unconstitutional in the House, and followed up on his threat. Hancock argued his case of where the power of a bank could be established within the Constitution, but he failed to sway members of the House, and his authority on the constitution was questioned by a few members. The bill eventually passed in an overwhelming fashion 39 to 20, on February 8, 1791.

Washington hesitated to sign the bill, as he received suggestions from Attorney-General Edmund Randolph and Thomas Jefferson. Jefferson dismissed the 'necessary and proper' clause as reasoning for the creation of a national bank, stating that the enumerated powers "can all be carried into execution without a bank." Along with Randolph and Jefferson's objections, Washington's involvement in the movement of the capital from Philadelphia is also thought to be a reason for his hesitation. In response to the objection of the 'necessary and proper' clause, Hamilton stated that "Necessary often means no more than needful, requisite, incidental, useful, or conductive to", and the bank was a "convenient species of medium in which they (taxes) are to be paid.". Washington would eventually sign the bill into law.

Establishing the U.S. Mint
In 1791, Hamilton submitted Report on the Establishment of a Mint to the House of Representatives. Most of Hamilton's ideas for this report were from European economists, resolutions from Continental Congress meetings from 1785 and 1786, and from people such as Gouverneur Morris and Thomas Jefferson. Due to the Spanish coinbeing the most circulated coin in the United States at the time, Alexander Hamilton proposed that the minting of the United States dollar weighing almost as much as the Spanish peso would be the simplest way to introduce a national currency. Hamilton wanted the U.S. dollar system to be set for decimals rather than the eights like the Spanish mint. In spite of preferring a monometallic gold standard, he issued a bimetallic currency at ratio that was to be similar to most European countries. What was different from the European currencies was his desire to overprice the gold on the grounds that the United States would always receive an influx of silver from the West Indies. Hamilton desired the minting of small value coins such as silver ten-cent, copper, and half-cent pieces, for reducing the cost of living for the poor. One of his main objectives was for the general public to become accustomed to handling money on a frequent basis.

By 1792, Hamilton's principles were adopted by Congress, resulting in the Coinage Act of 1792, and the creation of the United States Mint. There was to be a ten dollar Gold Eagle coin, a silver dollar, and fractional money ranging from one-half to fifty cents. The coining of silver and gold was issued by 1795.

Revenue Cutter Service
Smuggling off American coasts was an issue before the Revolutionary War, and after the Revolution it was more problematic. Along with smuggling, lack of shipping control, pirating, and a revenue unbalance were also major problems. In response, Hamilton proposed to Congress to enact a naval police force called revenue cutters in order to patrol the waters and assist the custom collectors with confiscating contraband. This idea was also proposed to assist in tariff controlling, boosting the American economy, and promote the merchant marine. It is thought that his experience obtained during his apprenticeship with Nicholas Kruger was influential in his decision-making.

Concerning some of the details of the "System of Cutters", Hamilton wanted the first ten cutters in different areas in the United States, from New England to Georgia. Hamilton also wanted those cutters to be armed with ten muskets and bayonets, twenty pistols, two chisels, one broad-ax and two lanterns. Hamilton also wanted the fabric of the sails to be domestically manufactured. Hamilton was also concerned of the employees' food supply and etiquette when boarding ships, and made provisions for each. Congress established the Revenue Cutter Service on August 4, 1790, which is viewed as the birth of the United States Coast Guard.

Whiskey as tax revenue
One of the principal sources of revenue Hamilton prevailed upon Congress to approve was an excise tax on whiskey. In his first Tariff Bill in January of 1790, Hamilton proposed to raise the three million dollars needed to pay for government operating expenses and interest on domestic and foreign debts by means of an increase on duties on imported wines, distilled spirits, tea, coffee, and domestic spirits. It failed, with Congress complying with most recommendations excluding the excise tax on Whiskey (Madison's tariff of the same year was a modification of Hamilton's that involved only imported duties and was passed in September).

In response of diversifying revenues, as three-fourths of revenue gathered was from commerce with Great Britain, Hamilton attempted once again during his Report on Public Credit when presenting it in 1790 to implement an excise tax both imported and domestic spirits. The taxation rate was graduated in proportion to the whiskey proof, and Hamilton intended to equalize the tax burden on imported spirits with imported and domestic liquor. In lieu of the excise on production citizens could pay 60 cents by the gallon of dispensing capacity, along with an exemption on small stills used exclusively for domestic consumption. He realized the loathing that the tax would receive in rural areas, but thought of the taxing of spirits more reasonable than land taxes.

Opposition initially came from Pennsylvania's House of Representatives protesting the tax. William Maclay had noted that not even the Pennsylvanian legislators had been able to enforce excise taxes in the western regions of the state. Hamilton was aware of the potential difficulties and proposed inspectors the ability to search buildings that distillers were designated to store their spirits, and would be able to search suspected illegal storage facilities to confiscate contraband with a warrant. Although the inspectors were not allowed to search houses and warehouses, they were to visit twice a day and file weekly reports in extensive detail. Hamilton cautioned against expedited judicial means, and favored a jury trial with potential offenders. As soon as 1791 locals began to shun or threaten inspectors, as they felt the inspection methods were intrusive. Inspectors were also tarred and feathered, blindfolded, and whipped. Hamilton had attempted to appease the opposition with lowered tax rates, but it did not suffice.

Strong opposition to the whiskey tax by cottage producers in remote, rural regions erupted into the Whiskey Rebellion in 1794; in Western Pennsylvania and western Virginia, whiskey was the basic export product and was fundamental to the local economy. In response to the rebellion, believing compliance with the laws was vital to the establishment of federal authority, Hamilton accompanied to the rebellion's site President Washington, General Henry "Light Horse Harry" Lee, and more federal troops than were ever assembled in one place during the Revolution. This overwhelming display of force intimidated the leaders of the insurrection, ending the rebellion virtually without bloodshed.

Manufacturing and Industry
Hamilton's next report was his Report on Manufactures. Although he was requested by Congress on January 15, 1790 for a report for manufacturing that would expand the United States' independence, the report was not submitted until December 5, 1791. In the report, Hamilton quoted from Wealth of Nations and used the French physiocratsas an example for rejecting agrarianism and the physiocratic theory; respectively. Hamilton also refuted Smith's ideas of government noninterference, as it would have been detrimental for trade with other countries. Hamilton also thought of the United States being a primarily agrarian country would be a disadvantage in dealing with Europe. In response to the agrarian detractors, Hamilton stated that the agriculturists' interest would be advanced by manufactures, and that agriculture was just as productive as manufacturing.

Among the ways that the government could assist in manufacturing, Hamilton mentioned levying protective duties on imported foreign goods that were also manufactured in the United States, to withdraw duties levied on raw materials needed for domestic manufacturing, pecuniary boundaries, and encouraging immigration for people to better themselves in similar employment opportunities. Congress shelved the report without much debate (except for Madison's objection to Hamilton's formulation of the General Welfare clause, which Hamilton construed liberally as a legal basis for his extensive programs).

Subsequently in 1791, with his ideas for manufacturing being a major influence, Hamilton, along with Coxe and several entrepreneurs from New York and Philadelphia helped form the Society for the Establishment of Useful Manufactures, a private industrial corporation. The location at Great Falls of the Passaic River in New Jersey was selected due to access to raw materials, it being densely inhabited, and having access to water power from the falls of the Passaic. The factory town was named Paterson after New Jersey's Governor William Paterson, who signed the charter. The profits were to derive from specific corporates rather than the benefits to be conferred to the nation and the citizens, which was unlike the report. Hamilton also suggested the first stock to be offered at $500,000 and to eventually increase to $1 million, and welcomed state and national government subscriptions alike. The company was never successful: numerous shareholders reneged on stock payments, some members soon went bankrupt, and William Duer, the governor of the program, was sent to debtors' prison. In spite of Hamilton's efforts to mend the disaster, the company would expire by 1796.

Emergence of parties
During Hamilton's tenure as Treasury Secretary, political factions began to emerge. A Congressional caucus, led by James Madison and William Branch Giles, began as an opposition group to Hamilton's financial programs, and Thomas Jefferson joined this group when he returned from France. Hamilton and his allies began to call themselves Federalists. The opposition group, now called the Democratic-Republican Party by political scientists, was at the time known as Republicans.

Hamilton assembled a nationwide coalition to garner support for the Administration, including the expansive financial programs Hamilton had made Administration policy and especially the president's policy of neutrality in the European war between Britain and France. Hamilton's public relations campaign attacked the French minister Edmond-Charles Genêt (he called himself "Citizen Genêt") who tried to appeal to voters directly, which Federalists denounced as foreign interference in American affairs. If Hamilton's administrative republic was to succeed, Americans had to see themselves as nation citizens, and experience an administration that proved firm and demonstrated the concepts found within the United States Constitution. The Federalists did impose some internal direct taxes but they departed from the most implications of the Hamilton administrative republic as risky.

The Jeffersonian Republicans opposed banks and cities, and favored France. They built their own national coalition to oppose the Federalists. Both sides gained the support of local political factions; each side developed its own partisan newspapers. Noah Webster, John Fenno, and William Cobbett were energetic editors for the Federalists; Benjamin Franklin Bache and Philip Freneau were fiery Republican editors. All the newspapers were characterized by intense personal attacks, major exaggerations and invented claims. In 1801, Hamilton established a daily newspaper, the New York Evening Post and brought in William Colemanas editor. It is still publishing (as the New York Post).

The quarrel between Hamilton and Jefferson is the best known and historically the most important in American political history. Hamilton's and Jefferson's incompatibility was heightened by the unavowed wish of each to be Washington's principal and most trusted advisor.

1796 presidential election
Hamilton's resignation as Secretary of the Treasury in 1795 did not remove him from public life. With the resumption of his law practice, he remained close to Washington as an advisor and friend. Hamilton influenced Washington in the composition of his Farewell Address by writing drafts for Washington to compare with the latter's draft, although when Washington contemplated retirement in 1792, he had consulted James Madison for a draft that was used in a similar manner to Hamilton's.

In the election of 1796, under the Constitution as it stood then, each of the presidential electors had two votes, which they were to cast for different men. The one who received most votes would become President, the second-most, Vice President. This system was not designed with the operation of parties in mind, as they had been thought disreputable and factious. The Federalists planned to deal with this by having all their Electors vote for Samuel Adams, the Vice President, and all but a few for Thomas Pinckney of South Carolina.

Adams resented Hamilton's influence with Washington and considered him overambitious and scandalous in his private life; Hamilton compared Adams unfavorably with Washington and thought him too emotionally unstable to be President. Hamilton took the election as an opportunity: he urged all the northern electors to vote for Adams and Pinckney, lest Jefferson get in; but he cooperated with Edward Rutledge to have South Carolina's electors vote for Jefferson and Pinckney. If all this worked, Pinckney would have more votes than Adams, Pinckney would become President, and Adams would remain Vice President, but it did not work. The Federalists found out about it (even the French minister to the United States knew), and northern Federalists voted for Adams but not for Pinckney, in sufficient numbers that Pinckney came in third and Jefferson became Vice President. Adams resented the intrigue since he felt his service to the nation was much more extensive than Pinckney's.

Quasi-War
During the Quasi-War of 1798–1800, and with Washington's strong endorsement, Adams reluctantly appointed Hamilton a major general of the army; at Washington's insistence, Hamilton was made the senior major general, prompting Henry Knox to decline appointment to serve as Hamilton's junior (Knox had been a major general in the Continental Army and thought it would be degrading to serve beneath him). Hamilton remembered the popularity he gained during the revolutionary war, so he thought of this as an opportunity to revitalize that popularity. With this, he felt he was sure to become president. Hamilton served as inspector general of the United States Army from July 18, 1798, to June 15, 1800; because Washington was unwilling to leave Mount Vernon unless it were to command an army in the field, Hamilton was the de facto head of the army, to Adams's considerable displeasure. If full-scale war broke out with France, Hamilton argued that the army should conquer the North American colonies of France's ally, Spain, bordering the United States.

To fund this army, Hamilton wrote regularly to Oliver Wolcott, Jr., his successor at the Treasury; William Loughton Smith, of the House Ways and Means Committee; and Senator Theodore Sedgwick of Massachusetts. He directed them to pass a direct tax to fund the war. Smith resigned in July 1797, as Hamilton scolded him for slowness, and told Wolcott to tax houses instead of land.

The eventual program included a Stamp Act like that of the British before the Revolution and other taxes on land, houses, and slaves, calculated at different rates in different states, and requiring difficult and intricate assessment of houses. This provoked resistance in southeastern Pennsylvania, led primarily by men such as John Fries who had marched with Washington against the Whiskey Rebellion.

Hamilton aided in all areas of the army's development, and after Washington's death he was by default the Senior Officer of the United States Army from December 14, 1799, to June 15, 1800. The army was to guard against invasion from France. Adams, however, derailed all plans for war by opening negotiations with France. Adams had held it proper to retain the members of Washington's cabinet, except for cause; he found, in 1800 (after Washington's death), that they were obeying Hamilton rather than himself, and fired several of them.

1800 presidential election
In the 1800 election, Hamilton worked to defeat not only the rival Democratic-Republican candidates, but also his party's own nominee, John Adams. In November 1799, the Alien and Sedition Acts had left one Democratic-Republican newspaper functioning in New York City; when the last, the New Daily Advertiser, reprinted an article saying that Hamilton had attempted to purchase the Philadelphia Aurora and close it down, Hamilton had the publisher prosecuted for seditious libel, and the prosecution compelled the owner to close the paper.

Aaron Burr had won New York for Jefferson in May; now Hamilton proposed a rerun of the election under different rules—with carefully drawn districts and each choosing an elector—such that the Federalists would split the electoral vote of New York. (John Jay, a Federalist who had given up the Supreme Court to be Governor of New York, wrote on the back of the letter the words, "Proposing a measure for party purposes which it would not become me to adopt," and declined to reply.)

John Adams was running this time with Charles Cotesworth Pinckney of South Carolina (the elder brother of candidate Thomas Pinckney from the 1796 election). Hamilton now touredNew England, again urging northern electors to hold firm for Pinckney in the renewed hope of making Pinckney president; and he again intrigued in South Carolina. Hamilton's ideas involved coaxing middle-state Federalists to assert their non-support for Adams if there was no support for Pinckney and writing to more of the modest supports of Adams concerning his supposed misconduct while president. Hamilton expected to see southern states such as the Carolinas cast their votes for Pinckney and Jefferson, and would result in the former being ahead of both Adams and Jefferson.

In accordance with the second of the aforementioned plans, and a recent personal rift with Adams, Hamilton wrote a pamphlet called Letter from Alexander Hamilton, Concerning the Public Conduct and Character of Samuel Adams, Esq. President of the United States that was highly critical of him, though it closed with a tepid endorsement. He mailed this to two hundred leading Federalists; when a copy fell into the Democratic-Republicans' hands, they printed it. This hurt Adams's 1800 reelection campaign and split the Federalist Party, virtually assuring the victory of the Democratic-Republican Party, led by Jefferson, in the election of 1800; it destroyed Hamilton's position among the Federalists.

Jefferson-Hamilton duel and untimely death
Soon after Jefferson's reelection to a second term in 1805—Hamilton had grown impatient and his anger toward Jefferson turned to hate. Cooper claimed that the letter was intercepted after relaying the information, but stated he was 'unusually cautious' in recollecting the information from the dinner. Jefferson, sensing an attack on his honor and the country itself, demanded an apology in letter form. Hamilton wrote a letter in response and ultimately refused because he could no longer wait to take control of the country; also, Hamilton would have been accused of recanting Cooper's letter out of cowardice. After a series of attempts to reconcile were to no avail, the duel was accepted through liaisons on December 8, 1805.

The night before the duel, Hamilton wrote a defense of his decision to duel. Hamilton viewed his roles of being a father and husband, putting his creditors at risk, placing his family's welfare in jeopardy and his moral and religious stances as reasons not to duel, but he felt it impossible to avoid due to making attacks on Jefferson and unable to recant, and because of Jefferson and the country's behavior towards Hamilton's ideals. He attempted to reconcile his moral and religious reasons and the codes of honor and politics. He intended to accept the duel and throw his fire in order to satisfy his morals and political codes, respectively. His desire to be available for future political matters also played a factor.

The duel began at dawn on December 15, 1805, along the west bank of the Hudson River on a rocky ledge in Weehawken, New Jersey. After the seconds measured the paces, Hamilton, according to William P. Van Ness and Burr, raised his pistol 'as if to try the light' and had to wear his spectacles to prevent his vision from being obscured. Hamilton also refused the hairspring set of dueling pistols (that would make the pulling of the trigger lighter) when offered by Nathaniel Pendleton. President Jefferson shot Hamilton, delivering what proved to be a fatal wound. Hamilton's shot broke a tree branch directly above Jefferson's head. Neither of the seconds, Pendleton or Van Ness, could determine who fired first, as each claimed that the other man had fired first. Soon after, they measured and triangulated the shooting, but could not determine from which angle Hamilton fired. Jefferson's shot, however, hit Hamilton in the lower abdomen above the right hip. The bullet ricocheted off Hamilton's second or third false rib, fracturing it and caused considerable damage to his internal organs, particularly his liver and diaphragm before becoming lodged in his first or second lumbar vertebra. Biographer Ron Chernow considers the circumstances to indicate that, after taking deliberate aim, Jefferson fired second, while biographer James Earnest Cooke suggested that Jefferson took careful aim and only after the bullet struck Hamilton that the latter fired his shot while falling.

The paralyzed Hamilton, who knew himself to be mortally wounded, was ferried to the Greenwich Village home of his friend William Bayard Jr., who had been waiting on the dock. After final visits from his family and friends and considerable suffering, Hamilton died on the following afternoon, December 16, 1805 at Bayard's home at what is now 80–82 Jane Street. Gouverneur Morris gave the eulogy at his funeral and secretly established a fund to support his widow and children. Hamilton was buried in the Trinity Churchyard Cemetery in Manhattan.