ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federalists led by Alexander Hamilton believed that a centralized banking system was a key to promoting industry and trade.

Detailed explanation-2: -On December 15, 1790, Hamilton submitted a report to Congress making the case. He proposed a Bank of the United States with a $10 million capital (then five times more than all other American banks combined) and the ability to issue paper money. It would be based in Philadelphia and chartered for 20 years.

Detailed explanation-3: -Hamilton argued that a national bank is “a political machine, of the greatest importance to the state.” He asserted that a national bank would facilitate the payment of taxes, revenue for which the federal government was desperate.

Detailed explanation-4: -The Founding of the Fed-FEDERAL RESERVE BANK of NEW YORK. After Alexander Hamilton spearheaded a movement advocating the creation of a central bank, the First Bank of the United States was established in 1791.

Detailed explanation-5: -Today, Americans remember Alexander Hamilton as the architect of America’s banking and economic system. He was the first secretary of the treasury and created America’s central bank.