answersLogoWhite

0


Best Answer

Alexander Hamilton's plan for a national bank was politically significant because the bank made the money in the country standardized. There was one place producing and controlling the money which kept inflation controlled.

User Avatar

Wiki User

βˆ™ 9y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

βˆ™ 12y ago

Nearly every country around the world, and certainly every developed industrial nation, has a central bank. Most serve one or more of the following functions: acting as a bank for bankers, issuing a common currency, clearing payments, regulating banks and acting as a "lender of last resort" for banks in financial trouble. The one thing they all do is serve as banker to their own governments.

But even though these central banks have common functions, each still operates in distinct ways, and those distinctions largely stem from the banks' historical foundations. If you want to understand the nature of a modern central bank, you have to study its history and relationship to commerce and government. This is especially true of the United States, where the Federal Reserve System's unique structure has been shaped by this country's earlier experiments with central banking, and by the political response to those experiments. Indeed, the Federal Reserve itself has changed in profound ways since it was signed into law in 1913.

Still, as you will see, the Federal Reserve has similarities to the country's first attempt at central banking, and in that regard it owes an intellectual debt to Alexander Hamilton. "There is scarcely any point in the economy of national affairs of greater moment than the uniform preservation of the intrinsic value of the money unit," Hamilton wrote in 1791, one week after the Senate approved his bank bill, and sounding like a modern-day Fed chairman. "On this, the security and steady value of property essentially depend."

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why was Alexander Hamilton's plan for a national bank politically significant?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Why was Alexander Hamilton's plan for a national bank was politically significant?

Alexander Hamilton's plan for a national bank was politically significant because the bank made the money in the country standardized. There was one place producing and controlling the money which kept inflation controlled.


Who was Alexander hamiltons chief opponent to the national bank?

Andrew Jackson.


What was Alexander Hamiltons biggest challenge?

to pay off national debt


How did thomas jeffersons view of the national debt differ from Alexander hamiltons?

Jefferson wanted to pay off debts; Hamilton did not.


What was Alexander hamiltons idea to unite the country around a strond national government?

Use economic measures to unite the country.


How did thomas jeffersons view of the national debt differ from that of Alexander hamiltons?

Jefferson wanted to pay off debt. Hamilton did not. CB


What resulted from Hamilton's taxes?

The whiskey rebellion was a tax protest in pennsylvania.The conflict was rooted in western dissatisfaction of alexander hamiltons program to found the national debt.


Why did thomas Jefferson oppose Alexander hamiltons idea for a national bank?

It gave the government to much power.


What was Alexander Hamiltons idea to unite the country around a strong national government?

His idea was to use economic measures to unite the country.


What led to Jefferson to oppose Hamiltons plans to promote industry and found a national bank?

HIS SMARTNESS LED HIM TO HAMILTONS PLANS


What led Jefferson to oppose Hamiltons plan to promote industry and found a national bank?

HIS SMARTNESS LED HIM TO HAMILTONS PLANS


Alexander Hamiltons 1790 Report on Public Credit recommended that the 52 million public debt be?

Pooled with the 25 million dollars of state debt and paid off through bonds and a national bank.