Alexander Hamilton

Born January 11, 1755 or 1757 (Nevis, British West Indies)
Died July 12, 1804 (Weehawken, New Jersey)

Secretary of the U.S. treasury, political leader

As the nation's first secretary of the treasury under President George Washington (1732–1799; served 1789–97; see entry in volume 2), Alexander Hamilton mapped out an ambitious plan to place the United States on firm economic footing. Hamilton was a key member of President Washington's Cabinet (a president's closest advisors), and the president commonly adopted Hamilton's ideas instead of the recommendations of other officials. As a result, Hamilton would help shape the new nation more than any other individual, and his influences continued for decades later.

"If we are wise enough to preserve the Union we may for ages enjoy an advantage similar to that of an insulated situation. Europe is at a great distance from us."

Hamilton sought to reshape the American economy, which was primarily agricultural in the eighteenth century. He wanted the United States to have a market economy with robust international trade and growing industry. A market economy is commerce operating relatively free of government intervention, where demand and availability of goods and materials determines prices, distribution, and production levels. Hamilton believed that the new economy he proposed would create greater opportunities for citizens to improve their standing in society. Rather than inheriting land or wealth, they could apply their skills and hard work to earn higher status and financial security.

His ardent support of a strong central government and his economic plans placed Hamilton at the head of a growing political faction that grew into the Federalist Party. The Federalists favored a strong association between government and wealthy merchants, financiers, and manufacturers. Hamilton distrusted democracy (a government ruled through decisions by the majority of the people), believing that the common person was not sufficiently knowledgeable to vote in the best interests of the nation. Hamilton also sought to put limits on republicanism (governing a country by the consent of the people and for the benefit of the people through elected representatives). He wanted to establish national wealth and power and maintain political order in the young United States. However, his goals and ideas for the nation would come into sharp conflict with those of other political leaders in America.

A natural talent for economic trade

Alexander Hamilton was born on the island of Nevis, a British colony in the West Indies. There is uncertainty about whether he was born in 1755 or 1757. He grew up on the nearby island of Saint Croix. Alexander was the second of two sons born out of wedlock to James Hamilton, who came from a wealthy Scottish family, and Rachel Fawcett Lavien, daughter of a French Huguenot physician (the Huguenots were French Protestants who faced religious persecution by the French Catholic government after 1685). Rachel had been unsuccessful in gaining a divorce from her first husband, but through time she became known socially as James Hamilton's wife. James abandoned the family in 1765, as financial problems mounted. Rachel opened a small store on Saint Croix to support the family. However, she died only a few years later, in 1768, leaving Alexander an orphan as a preteen.

Young Hamilton had received a limited education from his mother and a Presbyterian priest. After his mother's death, he began working for two international merchants from New York who had established a store on Saint Croix. Hamilton proved so skilled in commerce that the merchants gave him more and more responsibilities.

Off to school in America

Recognizing Hamilton's substantial ambition and intelligence, some of his relatives and the priest who had educated him offered to pay for Hamilton's college education. Hamilton left for New York in 1772. He first received additional schooling at a preparatory school and then entered King's College (later Columbia University) in the fall of 1773.

Hamilton was an avid reader and excelled in his studies. He also found time to make friends with a number of influential citizens who were promoting independence from Britain. He became increasingly involved in political activity, speaking at political rallies and attracting attention with his writing on political matters. He published two pamphlets in the winter of 1774–75, while still a teenager. One pamphlet rebutted criticisms by the Reverend Samuel Seabury (1729–1796) over actions taken by the First Continental Congress in 1774 to challenge British policies. Hamilton published the two pamphlets anonymously. They were so well written that many people thought they must be the work of a prominent political leader such as Massachusetts politician John Adams (1735–1826; see entry in volume 1).

A full war experience

When war broke out in 1775, Hamilton eagerly jumped into the action. He became an officer in command of an artillery company for the Continental Army. Impressed with Hamilton's leadership abilities, General Nathanael Greene (1742–1786) introduced him to General George Washington. Working under Washington's command, Hamilton demonstrated courage during battles fought in New York and New Jersey, including the Battle of Trenton. He saw considerable combat action through 1776. In March 1777, Hamilton became a lieutenant colonel and personal aide to General Washington. He showed great intellect and skill in his handling of Washington's heavy load of correspondence with Congress, the states, and others.

Hamilton was greatly influenced by what he observed during the war as General Washington's trusted adviser. For example, he noted that the Continental Congress had no taxing powers, so it was forced to finance the war with almost worthless paper money. The Congress held no stocks of gold or silver to back or support the value of the paper money it printed. Therefore, citizens could not take the currency to a bank and exchange it for the same value of gold or silver. Any stocks of gold or silver in America were held by the states to support their own paper money. While farmers and merchants profited from wartime demands for supplies and food, the soldiers went without pay and were often hungry and poorly clothed. In 1777 and 1778, Hamilton wrote several reports on improving the military, including a plan of reorganization and a set of military regulations.

In 1780, while the war continued, Hamilton married Elizabeth Schuyler, daughter of wealthy and influential New Yorker General Philip Schuyler (1733–1804). They had eight children.

During the war, Hamilton read extensively on European economic and political matters. Hamilton also became an avid supporter of a strong central government, believing it was necessary for the nation's survival. He believed that any government that made the conduct of business profitable for its citizens would appeal to wealthy business interests and could prosper with their investments and financial support. Businessmen profiting in a national economy would want that nation to survive and prosper as well. In April 1781, he sent a lengthy letter to Robert Morris (1734–1806), treasurer for the national government that was operating under the Articles of Confederation, the nation's first constitution. The letter stressed the need for a highly centralized national financial system in place of the existing situation in which states competed over trade with each other while using different currencies.

Hamilton served General Washington until early 1781. He then left that position to seek more active combat duties. Later that year, Washington assigned him to command an infantry battalion. Hamilton again showed courage on the battlefield, leading his troops to victory at the Battle of Yorktown.

A life of law and politics

Following the Battle of Yorktown, Hamilton left military service to begin a new stage in his life. He decided to become a lawyer, passing the New York bar (law test) in July 1782 after only a few months of study. A bok he wrote while studying law became an important law manual that was used for many years in New York. Hamilton became a member of the Continental Congress in November 1782. This experience further confirmed a belief he had formed while serving in the Continental Army for General Washington that the nation would not survive under the Articles of Confederation. The Articles had created a very weak central government that had no power to raise money through taxes or to regulate trade among the states. Hamilton left his Congress seat in 1783 to open a private law practice on Wall Street in New York City.

Hamilton's interest in government reform persisted, and when a meeting of states was planned for September 1786, he was appointed as a delegate for New York. Hamilton was one of twelve delegates to attend the meeting, which took place in Annapolis, Maryland. Discussions at the meeting focused on America's economic plight. Failing to come up with any immediate solutions, the delegates recommended that a larger convention of states should take place in Philadelphia the following year. The purpose of the proposed convention would be to correct the severe problems of the national government. Hamilton drafted the proposal for the second meeting of states, a meeting that was destined to become the Constitutional Convention.

Adopting a new constitution

Serving in the New York legislature in 1787, Hamilton persuaded his fellow legislators to send delegates to the Philadelphia convention in May 1787. He was selected as one of three New York delegates. Hamilton was surprisingly quiet throughout much of the debates that summer as he had to tend at times to his law practice. He did give one lengthy speech on June 18, in which he proposed a radical idea for a new national government. He proposed that the federal government appoint state governors and that U.S. senators and the president be elected for life. These changes, if adopted, would nearly eliminate state governments and take much political power away from the people.

The constitution adopted that September did not include Hamilton's radical changes. However, it did provide for a much stronger central government than the Articles of Confederation had allowed. Hamilton fully supported the new constitution, but the other two New York delegates strongly disapproved and returned to New York without signing the document. Hamilton had no authority to sign the Constitution on behalf of New York, because he was essentially outvoted two to one in the New York delegation. Nonetheless, when the time came, he stepped forward and signed the Constitution as an individual, starting a battle in New York over ratification (acceptance).

Ratification attempts

Hamilton joined with fellow New Yorker John Jay (1745–1829; see entry in volume 1) and James Madison (1751–1836; see entry in volume 2), the principal author of the Constitution, to write a series of eighty-five essays published in New York newspapers from October 1787 to May 1788. The essays promoted ratification of the new constitution by the states. Hamilton wrote at least fifty-one of the essays on his own and three with Madison. The essays were published in a book titled The Federalist, one of the most influential political books produced in U.S. history. In his essays, Hamilton interpreted the Constitution and explained the powers of the three branches of government. U.S. courts would use these essays for the next two centuries, whenever cases required interpretation of the Constitution. While he was still writing the essays, Hamilton returned to a seat in the Continental Congress in February 1788 and helped establish a time frame for creating a new government.

Hamilton displayed his great political skills at the New York ratifying convention in Poughkeepsie in June 1788. At the beginning of the convention, the delegates were heavily opposed to ratification. However, with determination and the help of John Jay and Robert R. Livingston (1746–1813), Hamilton was able to change their minds, persuading them to approve the Constitution. In the end, the delegates voted in favor of ratification by a narrow margin.

Secretary of the treasury

With the formation of the new national government under the U.S. Constitution, newly elected President Washington appointed Hamilton as the first secretary of the treasury in September 1789. Former Confederation treasurer Robert Morris had been the first choice for the post, but he declined the appointment. Hamilton was the obvious second choice, and he eagerly accepted. The treasury secretary was the most important position in government at that time because the nation had serious financial problems. Congress assigned Hamilton the task of developing a plan for national economic reform.

Hamilton quickly became a dominating influence in President Washington's administration. He was committed to making the United States a major economic power in the world. To do this, he needed to increase the economic importance of American manufacturing to balance out the influence of agriculture. Hamilton wanted to provide U.S. manufacturers with money for expansion and stimulate foreign trade. Strengthening the federal government and building the U.S. economy were his primary goals. He was much less concerned about protecting individual liberties.

Hamilton's plan

Having paid no interest on its foreign loans for years, the U.S. government had an exceptionally poor credit reputation among potential lenders, and the national debt was large. Hamilton estimated that the nation owed $11 million to foreign lenders and $42 million to individual American citizens and companies that had helped finance the American Revolution. In addition, the states owed their lenders $25 million, money used by the state militias during the war. To remedy the dire situation, Hamilton proposed a series of economic plans, which he unveiled in Congress between January 1790 and December 1791. Congress adopted many of Hamilton's recommended measures. They assumed the states' war debts, established a national bank and national mint (a place where bills and coins are manufactured), and funded payment of the national debt on an annual basis. Congress also established new taxes on imported goods and on domestic whiskey production to provide revenue for the government. Whiskey production by American farmers was widespread since they found it was the most efficient means of making profits with their corn crops. Corn itself was too difficult to transport over the nation's poor road system, so the corn was mashed and used in the whiskey-making process.

Debates over creation of the national bank led Madison and others to claim that the federal government had no constitutional powers to charter a private bank. Hamilton responded by invoking the "implied powers" clause of the Constitution for the first time. He asserted that the clause gave Congress authority to take whatever actions were necessary to carry out its enumerated (explicitly granted) powers. Although such actions were not specified in the Constitution, Hamilton thought they were intended and implied by those who drafted the document. Hamilton won this battle and the first national bank was established. Creation of the bank was necessary for the government to collect revenue and manage its finances. In 1789, only three banks existed in the nation. The new First Bank of the United States had a twenty-year charter and began with $10 million to loan to new or expanding businesses.

Hamiltonians and Jeffersonians

Hamilton participated in almost every key decision involving financial, domestic, or foreign policy issues during George Washington's presidency. Such a role conflicted with the assigned duties and responsibilities of others in the presidential administration, particularly Secretary of State Thomas Jefferson (1743–1826; see entry in volume 1). Hamilton and Jefferson steadily developed a strong dislike for each other. Each one believed that the other was leading the nation to ultimate destruction. From their fundamentally different perspectives grew two political factions known as the Hamiltonians and Jeffersonians. These two unorganized factions grew into the nation's first two political parties, the Federalists, led by Hamilton, and the Republicans (later called the Democratic-Republicans), led by Jefferson. President Washington, caught in the middle of the conflict between two of his Cabinet members, was much distressed by the lack of unity among his advisors, the nation's leaders. However, his efforts to lessen the growing bitterness were unsuccessful.

In 1789, Hamilton had encouraged printer John Fenno (1751–1798) to publish pro-Federalist articles in the Gazette of the United States. The articles largely promoted Hamilton's vision of what the U.S. government should be. Two years later, in reaction to Fenno's newspaper, Jefferson recruited Philip Freneau (1752–1832; see entry in volume 1) to publish the National Gazette, a newspaper that would promote Jeffersonian perspectives. Each paper strongly criticized the opposing political faction and its leaders.

Hamilton continued taking part in foreign policy matters in 1793. He guided President Washington to a position of neutrality (not supporting either warring side) when France declared war on Britain. The Jeffersonians were clamoring to aid France. Hamilton argued that war against Britain would be disastrous for the United States. Hamilton's economic policies were largely funded by tax revenue on British importe dgoods. In addition, the nation had no money to raise an army. Hamilton's concerns convinced President Washington that it would be best to avoid entering the war. Washington issued the Neutrality Proclamation in April 1793.

The effects of Hamilton's actions

Thomas Jefferson was frustrated that President Washington consistently favored Hamilton's advice. Jefferson therefore resigned as secretary of state in December 1793. As tensions with the British continued to build, Hamilton encouraged the president to send New York politician John Jay to Britain in the summer of 1794 to seek peaceful resolutions. While Jay was proceeding openly with negotiations, he was unaware that Hamilton was working behind the scenes with the British to influence the outcome of the talks.

Hamilton's economic and foreign policies brought dramatic results, both positive and negative. On the positive side, the credit of the United States became very strong, the national bank brought about growth in business, America's wealthy and influential citizens became strong financial supporters of the government, and a uniform federal currency was established over potentially incompatible individual state currencies. The country prospered. The value of exports doubled, and business was expanding.

On the other hand, Hamilton's programs led to an armed rebellion in western Pennsylvania, carried out by farmers protesting the whiskey tax. The Whiskey Rebellion did, however, give Hamilton a chance to show the new government's strength. He and President Washington personally led a force of twenty thousand troops to quiet the rebellion. Hamilton's policies created a great deal of controversy. They inspired the formation of the nation's first two political parties, which were made up of people who either supported the policies or opposed them. His political enemies claimed that Hamilton was pro-British and undoing the gains of liberty brought by the Revolution.

Despite the criticism he endured, Hamilton remained a strong figure in early U.S. politics. However, as secretary of the treasury, he received only modest pay, and he began to feel the financial hardship of his position. Therefore, in January 1795, Hamilton left office. He had acted with great boldness and foresight in his role as secretary of the treasury. When he took office, the national government had been essentially broke; by the time he left, the United States enjoyed a higher credit rating than any European country. A high credit rating meant people trusted loaning money to the U.S. government and felt confident that the nation could pay the loan back on schedule.

Hamilton returned to a prosperous private law practice. He held no aspirations for the presidency. He was far too controversial a figure to have any real chance of election. However, his law practice was very successful. He was a favorite of the New York merchants.

A continuing influence

Hamilton continued to be a leading force in the Federalist Party and a close advisor to President Washington. He helped draft President Washington's famous Farewell Address, the announcement that Washington would retire from public office at the end of his second term. When Vice President John Adams succeeded Washington as president, Adams retained everyone who was in Washington's Cabinet when he completed his second term. These were all men who largely identified with the Federalist Party and personally knew well its leader Hamilton. As a result, Hamilton's influence remained strong until Adams purged the Cabinet membership of close Hamilton friends in 1800 to end Hamilton's strong influence on the presidential administration.

Hamilton's efforts to influence the Adams administration led to a major split in the Federalist Party. In 1798, as the United States edged toward war against France, President Adams asked George Washington if he would assume command of the military in the event that America did enter the war. Washington agreed to take on the job but demanded that Hamilton be made second in command. Much to Adams's dismay, Hamilton was given a rank of major general. Hamilton proceeded to build the army, anticipating military glory once again. However, Adams sent a successful peace mission to France in 1800, so the U.S. military never got involved. Hamilton was left very disappointed. In the fall election in 1800, Hamilton did not support the reelection campaign of Adams, his fellow Federalist. Instead, prior to the election, he made a grave political error by publishing a strong critique of Adams. The Federalist Party suffered from Hamilton's rash action and poor judgment; Adams, who lost to Democratic-Republican Jefferson, was the last Federalist to win a presidential election.

Dueling in America

In 1804, the year that Aaron Burr shot down Alexander Hamilton in a duel, dueling was a socially accepted way of settling a dispute and preserving a person's honor. Hamilton's nineteen-year-old son, Phillip, died in a duel only three years earlier at the same location where his father would die—Weehawken, New Jersey. Weehawken was a common place for duels because it was directly across the Hudson River from New York.

A duel is a formal fight between two people using weapons. Typically, a man would challenge another person to a duel after being insulted or offended by that person. If the person who received the challenge accepted the challenge, he would choose the place and time of the duel and the type of weapon to be used. Dueling had a long history in Europe, and the American colonists brought it with them to North America. The first duel recorded in America occurred in 1621, not long after the Pilgrim ship the Mayflower landed in New England.

At the time of the Hamilton-Burr duel, those who engaged in dueling followed a code developed in Ireland in 1777; the code consisted of twenty-six rules. For instance, both parties were required to have representatives who acted on their behalf to try to resolve the dispute before the date of the duel. An apology would immediately end the challenge. If a person refused to accept a challenge, the challenger could then post his grievances against the offender in a prominent public place. The rules directed how the duelers would choose the time of day and number of shots. The rules also dictated that the duelists had to fire within three seconds after taking aim. Death was not common, because between 1750 and 1850 most duels were fought with large-caliber pistols, which were not very accurate and often misfired.

Many prominent Americans took part in duels, including future U.S. president Andrew Jackson (1767–1845; see entry in volume 1), who gained a reputation for his excellent dueling skills. Other important American leaders, including George Washington and Benjamin Franklin (1706–1790; see entry in volume 1), strongly opposed dueling. Despite laws against dueling in some states, it persisted as an accepted social practice until the time of the American Civil War (1861–65).

Political feud simmers, rages, and ends in tragedy

Aside from Jefferson and Adams, Hamilton had also established a long-running political and personal feud with fellow New Yorker Aaron Burr (1756–1836; see entry in volume 1). In the 1800 presidential election, Burr tied with Jefferson for the most electoral votes for president. At that time, the presidential and vice presidential candidates were all listed on the same ballot. Electors of the states cast two votes for the two candidates they wished to be president and vice president; the top vote-getter was elected president, while the second-place winner became vice president. Jefferson and Burr represented the Democratic-Republican Party, and all electors who supported that party cast their two votes for them. As a result, both received the same number of votes.

When the House of Representatives cast votes in order to break the tie—as required by law—Hamilton made it clear that he supported Jefferson, and Jefferson ultimately won the presidency. It was no secret why Hamilton made this choice: Hamilton detested Burr, partly because Burr had defeated Hamilton's father-in-law in his 1794 campaign to become governor of New York.

After Jefferson took office as president, Hamilton helped found the New York Evening Post in 1801. He used the publication to promote his political views in opposition to the Jefferson administration. During this time Hamilton continued his profitable law practice. Hamilton built a large home for his family in New York City in 1802 and 1803; it was known as "The Grange."

Hamilton once again crossed paths with Burr in 1804. Burr, who had earlier left the Federalist Party to run as a Democratic-Republican candidate, now rejoined the Federalists to run for New York governor. Hamilton publicly ridiculed Burr's capabilities, and some of his comments about Burr were published in a New York newspaper. Hamilton supported Burr's Democratic-Republican opponent in the election, and Burr was ultimately defeated.

Burr realized that his political life was ruined. Having left the Democratic-Republican Party and having been severely criticized by Hamilton, the recognized leader of the Federalist Party, he had no political clout left. Burr challenged Hamilton to a duel, a formal fight between two people using weapons. At the time, duels were an accepted way for men to reclaim their honor if they had been insulted or wronged in some way. Hamilton's son had been killed in a duel only a few years before; nevertheless, Hamilton still felt obligated to accept Burr's challenge. They met in Weehawken, New Jersey, on the bank of the Hudson River, on the morning of July 11, 1804. As they drew their guns, Hamilton chose not to fire at Burr. However, Burr fired a shot that penetrated Hamilton's liver and spine. Hamilton died the following day. One of America's most dominating political figures had lost his life at the hands of the vice president of the United States.

For More Information

Books

Chernow, Ron. Alexander Hamilton. New York: Penguin Press, 2004.

Hecht, Marie B. Odd Destiny: The Life of Alexander Hamilton. New York: Macmillan, 1982.

Lycan, Gilbert L. Alexander Hamilton & American Foreign Policy: A Design for Greatness. Norman: University of Oklahoma Press, 1970.

Miller, John C. Alexander Hamilton: Portrait in Paradox. New York: Harper, 1959. Reprint, Westport, CT: Greenwood Press, 1979.

Morris, Richard B., ed. Alexander Hamilton and the Founding of the Nation. New York: Dial Press, 1957. Reprint, New York: Harper & Row, 1969.

Web Sites

"Alexander Hamilton: The Man Who Made Modern America." New-York Historical Society.http://www.alexanderhamiltonexhibition.org/ (accessed on August 13, 2005).

"The Duel." The American Experience: Public Broadcasting Service.http://www.pbs.org/wgbh/amex/duel/index.html (accessed on August 13, 2005).