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To: rohry
Hamilton was the greatest thinker from the Revolutionary period in political theory, law and economic/financial subjects. His thoughts compared to Jefferson or Madison are in a completely different level.

His enemies were economic buffoons.

So it is good to see someone go to him for definitive examinations of e/f issues rather than throw up some irrelevant piece of nonsense from Jefferson.

Of course, Hamilton realized that conditions prevailing at the time of the Constitution's creation would not allow using only metals as money since there was almost none in the new nation. He understood that the Continentals had collapsed from overprinting and suggested that one of the reasons for obtaining loans from France during the war was to back the currency. States not only over issued currency but refused to honor its debts issued in the War.

Jefferson was one who repeatedly suggested and defended defaults of those debts even to foreign nations.

A national bank was the mechanism H used to increase the money supply but it was not to do so by freely running printing presses. National debt was the engine he devised to provide an increased money supply since bonds, notes whose value was assured served the same function as money (specie). Not only did establishment of the funding system for the National debt essentially add millions to the capital available but it made that debt a better investment than that of any other nation.

Studying Hamilton's life and thoughts is a never ending source of wonder and profit. It is just too bad he could not afford to accept the Chief Justiceship when Washington wanted him to since John Marshall considered him his superior in legal acumen. Then, at least, he wouldn't have been murdered by that scumbag, Burr.

196 posted on 05/10/2002 11:16:10 AM PDT by justshutupandtakeit
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To: justshutupandtakeit
Hamilton realized that conditions prevailing at the time of the Constitution's creation would not allow using only metals as money since there was almost none in the new nation.

I appreciate the historical perspective that you've offered. Do you think that Hamilton was proposing something other than a metal-backed dollar? Although there was little gold and silver in the colonies/United States in the 1780's and 1790's don't you think there was an intention to trade with Spain and England to acquire "hard currency" (the Spanish Real and the English Pound)?

197 posted on 05/10/2002 12:14:38 PM PDT by rohry
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