54 INTRODUCTION. 



before the revolution, though very deficient in methodical arrangement, and on 

 many points extremely discursive, w^as, nevertheless, justly considered as consti- 

 tuting the foundation of a system of political economy, and establishing land- 

 marks for the guidance of subsequent investigation. 



Hamilton discussed, vvath surpassing ability, the fiscal policy of the government 

 in four reports. The first of which was on the public credit ; the second, on a 

 national bank ; the third, upon manufactures; and the fourth, on the establishment 

 of a mint. To point out the proper means for paying the public debts of the union 

 and of the states was the object of the first report. He recommended that no discri- 

 mination should be made between the creditors of the United States and those of 

 the several members of the confederacy, and that the new system of finance 

 should include the payment of all by the general government. 



The report on a national bank commenced with the proposition that such an 

 institution would be of primary importance, for a prosperous administration of 

 the finances, and of eminent utility, connected with the operations for the support 

 of public credit, and maintained the expediency of establishing such an institu- 

 tion, in a train of powerful arguments, derived from a view of the benefits which, 

 it was alleged, resulted to trade and industry from public banks, as well as those 

 affecting credit, which, as was supposed, such an institution would afford in the 

 peculiar circumstances of the country. The whole subject of banking, the uses 

 and relation of specie and circulating notes, their respective advantages and in- 

 conveniences as a currency, the arguments in favor of banks, and the objections 

 to which they were obnoxious, were all thoroughly discussed. The president 

 had required written opinions from the members of the cabinet, concerning the 

 constitutionality of a bank. Mr. Jefferson, secretary of state, and Mr. Randolph, 

 attorney-general, in their opinions denied the power of congress to establish such 

 an institution. Hamilton's report may be considered a reply to these opinions, 

 and whatever may be the merits of that still vexed question, this paper is univer- 

 sally conceded to be an able vindication of the side of the argument which the 

 author adopted. 



