The Life and Legacy of Alexander Hamilton [306029]

The Life and Legacy of Alexander Hamilton

Vorwissenschaftliche Arbeit verfasst von
Alexandru Timaru

Klasse: 8A
Schuljahr: 2018/19

Betreuerin: Prof. Mag. Susanne Hofmann

Bundesrealgymnasium Wien 4
Waltergasse 7
1040 Wien

Abstract

Few of America’s [anonimizat]. The aim of this thesis is to introduce his accomplishments and explore his life and death. [anonimizat] a hurricane had ravaged his island. He immediately set out on a [anonimizat] a foundation for the modern United States. He was a member of the Continental Congress, a [anonimizat]. Furthermore, [anonimizat].

[anonimizat], Alexander Hamilton was shot and killed in America’s [anonimizat]. [anonimizat]’s [anonimizat].

1 Introduction

When one hears the words ‘’Founding Father’’, one might think of influential men like George Washington or Thomas Jefferson. However, one founder tends to be overlooked: Alexander Hamilton. [anonimizat]’s first Secretary of Treasury. The man who saved his country from an economic disaster in a time of chaos and great uncertainty. The man who created the base for today’s political and financial systems of the United States. Why is he the founder who has faded into the background of American history?

Who was Alexander Hamilton? What were his greatest achievements? The first chapters investigate his early life in the Caribbean and his journey to the American colonies. The next chapters deal with his military contribution in the Revolutionary War and his part in ratifying the Constitution. What impact did Hamilton’s career as the first Secretary of Treasury of the United States have on the nation? Additionally, his personal and scandalous relationships are explored. As a conclusion, this work features Alexander Hamilton’s legacy in society.

Biographies, letters and websites were researched in order to answer questions regarding Alexander Hamilton. Furthermore, essential historical events which happened during Hamilton’s life, [anonimizat].

My objective in this research is to inform the reader of Alexander Hamilton’s biggest accomplishments and his influence in the political and financial systems of the newly forming United States of America.

2 Early Life

2.1 Family

Hamilton’s mother – [anonimizat] a native of the Isle of Nevis. After her father’s death, Rachel Faucette had started anew on the neighboring island of St. Croix. Having been introduced to a [anonimizat]’s mother offered her for money to the older man. In 1745, [anonimizat]-old, [anonimizat]. [anonimizat]. The marriage began to deteriorate, so Rachel found it best to avoid her husband by leaving the house more often and meeting other men. Lavien had her locked in the town’s jail, to prevent her from having an affair.

Soon after being released, she fled to the island of St. Kitts. In 1750, she became acquainted with James Hamilton, the fourth son of a Scottish Laird. By the right of primogeniture in England and Scotland, younger sons were excluded from inheriting property and thus had to fend for themselves. Therefore, he found it best to come to the West Indies to seek his fortune in the sugar plantations. James Hamilton and Rachel soon moved together to Nevis, where she had inherited property from her father.

2.2 Childhood

Alexander Hamilton was born on the 11th of February 1755/1757 on the island of Nevis, in the Caribbean. He and his older brother, James Jr. Hamilton, were both born out of wedlock, as a result of the illegitimate relationship of their mother with James Hamilton. Hamilton’s year of birth is a complicated puzzle. As a result of the few documents still intact from Hamilton’s childhood, it is uncertain whether the year Hamilton’s birth was in 1755 or 1757.

In 1759, Rachel’s lawful husband, Levine, obtained a divorce from her, arguing that she had neglected her duty as wife and abandoned her family. He ensured that their possessions would be inherited by Peter exclusively, their one legitimate son.

The following year, the family moved to St. Croix because of a business assignment that James Hamilton had received. After they had lived together for more than five years, the father suddenly abandoned them, perhaps because he could not afford to support his family anymore. A few relatives were able to help them until the mother opened a shop on the ground floor of their house in Christiansted.

In 1768 Rachel Hamilton contracted yellow fever and a week later Alexander fell ill too. A doctor attempted to heal them, but the mother passed away after two days despite the effort. When Alexander recovered it turned out that all their mother’s belongings were inherited by their step-brother Peter Levien, who he did not spare a penny of the small inheritance for the two orphaned children. Alexander and his brother were soon put under their older cousin’s legal guardianship, who later committed suicide after a long series of failed attempts at starting a business in town. Their uncle, who was heartbroken at his son’s death, died as well. At age fourteen and sixteen, Alexander and his brother were now left to fend for themselves and miserably poor in a world which seemed too cruel to them.

They took separate paths to make a living. James was apprenticed to a carpenter and Alexander began to assist the mercantile house of Beekman and Cruger, New York traders who used to supply his mother’s shop. Now sheltered at a friend’s house, the ambitious Alexander kept training and working for the trading business. His exceptional intelligence was quickly spotted and rewarded by his patrons. Hamilton began to write poetry in his free time, which was soon going to be featured in the local gazette. Many people encouraged and motivated him towards a scholarship.

2.3 Turning point

In 1772 a remarkable storm and earthquake hit the island, causing an incredible amount of destruction. The week after, Alexander wrote a letter to his father, with whom he was still in contact, describing the terrifying happenings. A journalist named Hugh Knox published his letter in the Royal Danish American Gazette. The paper caused a sensation among local businessmen and even the island’s governor, who funded enough money to send Hamilton to the North American colonies and support his education.

2.4 Education

Hamilton had been denied any formal schooling on Nevis since his parents were not legally married and lacked membership of The Church of England. He received individual tutoring and classes in a private school.

In 1772, three weeks after leaving the devasted West Indies by ship, Hamilton arrived in Boston. He then proceeded immediately to New York, where he picked up the funds which sponsored his education.

Through many introductory letters sent by Hugh Knox, Hamilton had ready-made connections in the American Colonies, which helped him succeed faster. William Livingston, a lawyer settled in New Jersey, temporarily lodged Hamilton at his Liberty Hall. He and other influential men opened the political world to Hamilton and exposed him to the political currents of the day. For the next six months in New Jersey, the young man attended the Elizabethtown Academy, a well-established preparatory school, in order to compensate for his lack of knowledge in Latin, Greek and Mathematics.

Princeton, one of the nine colleges in the colonies, appealed the most to Hamilton because of the acquaintances that lived in that area of New Jersey. As he was in a hurry to catch up on his studies and lost years, Hamilton desired to finish his studies as quickly as possible. He even altered his birth year from 1755 to 1757, in order to appear younger and more intelligent for his age. His wish was nevertheless rejected by John Witherspoon, president of Princeton due to a recent experience, which revealed that trying to graduate at an accelerated pace would eventually cause more stress and exhaustion. Even though he preferred Princeton over King’s College, he ended up at the latter. Led by President Dr. Myles Cooper, the three-story building of King’s was situated in the northern part of New York. This exponentially growing city opened the world of politics, business, and law to Hamilton.

During the first months at King’s, Hamilton and a few colleagues formed a club which focused on writing and debating. The main discussion subject at the time was the tension between the British crown and the colonies, therefore giving him the chance to publish anti-British pieces such as ‘’A Full Vindication of the Measures of Congress’’ and ‘’The Farmer Refuted’’. In his first political article, he defended the Patriots’ cause of the Boston Tea Party and accused England of being corrupt.

In 1775, Hamilton had to discontinue his studies before graduating due to the outbreak of the Revolution. He joined the military and the college was turned into a military hospital.

3 Revolutionary War

3.1 Early war years

Alexander Hamilton joined the New York Provincial Artillery Company on the side of the Patriots. His company’s name was named the ‘’Hearts of Oak’’, also known as the ‘’Corsicans’’. In their first remarkable clash, they returned fire to a British ship in the Battery (Lower Manhattan) and successfully raided it using cannons. In 1776, Hamilton became captain of the artillery, which consisted of sixty men. He had immense military knowledge and was often praised by Generals for his intelligence. His company took part in the Battle of White Plains, which was led by George Washington. After failing to establish control and being chased, they coordinated an attack and surprised the enemy troops in the Battle of Trenton. In addition, Hamilton took part in the Battle of Princeton, where Washington successfully mobilized the American troops and pushed the British back.

3.2 Washington’s Aide-de-camp

‘’Well do I recollect the day when Hamilton’s company marched into Princeton, […] It was a model of discipline. At their head was a boy and I wondered at his youth, but what was my surprise when that slight figure… was pointed out to me as that Hamilton of whom we had already heard so much.’’

Not only did people spot Hamilton’s many qualities, but even generals invited him to become their aide-de-camp. However, when he received Washington’s request of filling in an open vacancy in his staff, Hamilton felt he could not decline it. The newly appointed lieutenant colonel now had Washington’s entire confidence and trust.

Hamilton served as a military adviser, drafted letters to Congress, state governors and the most powerful generals in the Continental Army. Not only did he have access to all confidential information, but he even issued orders from Washington over his own signature. As he progressed to the rank of chief of staff, Hamilton handled diplomatic missions, military and economic matters. This position kept him in regular contact with other leaders.

As the relationship between America and France grew closer, Hamilton became a constant emissary to the French. He often functioned as an interpreter for Washington and translated French diplomatic letters. ‘’Their friendship is the pillar of our security.’’ The French were perceived as allies. They significantly improved the prospects of the American victory, by helping the Patriots with additional soldiers, weapons and supplies.

While working in Washington’s staff, Hamilton befriended fellow officers such as John Laurens and Marquis de Lafayette. He also exchanged personal letters with them, which later sparked up the suspicion of Hamilton having a homosexual relationship.

‘’ […] I wish my dear Laurens, it m[ight] be in my power by action rather than words [to] convince you that I love you. […] You s[hould] not have taken advantage of my sensibility to ste[al] into my affections without my consent. […] But, like a jealous lover, when I thought you slighted my caresses, my affection was alarmed and my vanity piqued.’’

It is impossible to confirm that Hamilton had a hidden intimate relationship with John Laurens. By placing their exchanged letters in the context of the flowery diction of the time, their love was most likely brotherly and platonic.

3.3 Return to war

Hamilton’s frustration with the bureaucracy he dealt with on Washington’s behalf made him crave field combat. His wish was to lead a battalion, but his requests to join the battle were continuously denied by Washington. He feared no one else could match Hamilton’s ability to speak French and write refined letters from a leader’s perspective. As a result of Washington’s short temper, he scolded Hamilton after an insignificant misunderstanding. The commander in chief instantly regretted his actions and attempted reconcile. Hamilton turned down the apology and they broke up their four-year-long partnership. Washington honored his former aide-de-camp’s decision of leaving his staff and remained loyal towards him.

Shortly after, Hamilton and his wife Elizabeth Schuyler, daughter of Philip Schuyler whom he had married in the fall of 1780, moved together to the east bank of the Hudson, by no coincidence opposite Washington’s headquarters. Hamilton persistently asked Washington for a field command, despite being rejected continuously, under the excuse that Washington needed to appoint men of higher rank. As a last resort, Hamilton sent a letter to Washington, threatening to resign if he didn’t get his desired command. Instead of declining Hamilton again, Washington assigned him Lieutenant Colonel to a new Light Infantry battalion with Major Fish as his adjutant. The battalion consisted of four companies altogether.

The battle of Yorktown changed Hamilton’s prestigious rank of Washington’s aide to the one of a certified hero. To win the battle, the Patriots together with the help of French soldiers planned to take down Redoubts No. 9 and No. 10 of the British fortifications at Yorktown using bayonets only. Hamilton was given command of three battalions of light infantry, who fought and took Redoubt No. 10, suffering relatively few casualties. The French soldiers endured heavy losses but nonetheless succeeded in taking Redoubt No. 9 as planned. With few defenses left, the British surrendered. Although small fights continued for two more years, the Battle of Yorktown marked the end of the war.

3.4 Congress of the Confederation

Although being frustrated with the wartime Continental Congress, Alexander Hamilton was appointed in July 1782 to the same Congress he disliked, as a New York representative. The Congress’s dependence on the states’ voluntary financial support bothered Hamilton immensely. According to the Articles of Confederation, Congress was not allowed to demand money from the states or to collect taxes. The problems only worsened after November 1782, when a provisional peace treaty with Great Britain was signed. Soldiers of the Continental Army faced uncertain prospects and demanded their pay – in some cases, as much as six years owed – or promised pensions. Unable to demand money from the states, the Congress feared a rebellious uprising of the soldiers. Washington was able to calm down a group of protesting officers by addressing them personally and a committee chaired by Hamilton granted them a pension payment.

In a campaign to gain financial autonomy from the states, Alexander Hamilton and James Madison introduced a 5 percent duty on all imports. This proved impossible after it was rejected by the state of Rhode Island. However, a delegation persuaded the state to change its mind, thus successfully passing the law.

In 1783, even though the new system of import duties was in place, the biggest uprising yet forced Congress to request states to send money. The group of armed soldiers threatened to start a fight if their demand was not met in the shortest time possible. If not, they warned that they would loot the local bank to make their own justice.

Following the Battle of Yorktown, Hamilton resigned from Congress and returned to New York in order to continue the legal studies suspended at King’s College. In 1782, he managed to pass the bar exam by instructing himself. He was licensed as an attorney but soon qualified as a counselor, setting up practice in Albany.

4 Constitution and the Federalist Papers

4.1 Constitutional Convention

In 1786, Alexander Hamilton was elected to a one-year term in the New York Assembly. Next year, as a result of serving as an assemblyman, his father-in-law Philip Schuyler chose him as a delegate for the Constitutional Convention in Philadelphia. Governor George Clinton quickly modified Hamilton’s motion of requiring each state to five delegates to the Constitutional Convention to only three delegates. Clinton then chose New York’s other two delegates, John Lansing, Jr. and Robert Yates, who both opposed Hamilton’s wish of establishing a national government. Therefore, Hamilton would be outvoted within the New York delegation by the other two members.

Although the initial purpose of the convention intended to revise the Articles of Confederation, the delegates deleted the Articles completely and started creating the United States Constitution. Many large states gravitated toward the Virginia Plan, which called for a bicameral legislative branch, while smaller states preferred the New Jersey Plan, which called for each state to have one vote in Congress. Early in the four-month convention, Hamilton gave a six-hour speech opposing to both the Virginia Plan and the New Jersey Plan. He proposed the concept of electing a president and Senate that would serve for life only upon ‘’good behavior’’. In case of misconduct, the elected man would be recalled. William Samuel Johnson, a delegate of Connecticut, said that Hamilton’s speech ‘’has been praised by everybody [but] … supported by none’’. Many delegates found that his suggestions of an ‘’elective monarch’’ resembled the British Government in a way which would not be accepted by the American people, thus turning down his approach.

Ultimately, after major conflicts at the convention, the Connecticut Compromise seemed to solve all problems. The delegates decided that all states would receive equal representation in the Senate, (a benefit to the small states) while representation in the House of Representatives would be proportionate to each state’s population (a benefit to the large states).

By the end of the Convention, Hamilton participated in the Committee of Style and Arrangement, which would revise the text and arrange the articles of the Constitution which had been agreed upon. Hamilton demonstrated his writing abilities and undoubtedly contributed to the writing of the final draft of the Constitution.

Despite not being fully content with the new Constitution, Hamilton willingly signed the finished document on September 17, 1787. Since Lansing and Yates had already withdrawn, Hamilton was the only New York delegate who signed the United States Constitution.

4.2 The Federalist Papers

Soon after the new Constitution was signed by the delegates, the country began to divide into two groups. Those in favor of the Constitution and a powerful central government were called Federalists. Opponents of the Constitution, who feared that states’ rights would be taken away, were called Antifederalists.

Fearing disunion if the Constitution was not ratified, Hamilton recruited John Jay and James Madison as collaborators to write a set of essays defending and explaining the proposed Constitution. Hamilton supervised the entire project, enlisted the participants, wrote most of the papers and oversaw the publication. The essays later known as The Federalist Papers first appeared in The Independent Journal on October 27, 1787. The three authors hid their identities and signed all the papers under the same name, ‘’Publius’’. Each collaborator administered their area of expertise. John Jay covered the foreign affairs, James Madison covered the history of republics and confederacies, together with the general structure of the new government and Hamilton covered the executive and judicial branches, along with varying affairs of the Senate, taxation and military matters. Ultimately, The Federalist Papers consisted of eighty-five essays, with fifty-one being credited to Alexander Hamilton, twenty-nine to James Madison, and only five to John Jay.

At the end of the first essay, Hamilton outlined the contents of the Federalist papers. He drifted slightly from the initial proposition and in the end, the work of mainly Hamilton and Madison can be divided into two main parts. The first examines the defects of the current government, the Articles of Confederation, and the second deliberates the components of the legislative, executive and judicial branches of the new constitution.

5 Secretary of Treasury

Following ratification of the Constitution by most states, the newly elected President George Washington appointed Alexander Hamilton as the first Secretary of the Treasury on September 11, 1789.

Hamilton’s elaborate plan consisted of multiple proposals to restructure the country’s finances. In the first seventeen months that Hamilton served as Secretary of Treasury, the financial plan proposed by Hamilton and enacted by Congress not only strengthened the central government but improved the popular support of the government and thereby strengthened the Union. His ideas also reached into modern finance.

5.1 Report on Public Credit

After the Revolution, the American debt totalled at $79 million. The public credit was the price of liberty that came along with independence. In 1789, Hamilton’s first assignment as a Secretary of Treasury was to write a report on ways to improve the government’s debt by 1790. In preparing his report, Hamilton turned to various sources to seek opinions. His connections ranged from Frenchmen such as Jacques Necker and Montesquieu to British writers such as Thomas Hobbes and Malachy Postlethwayt. Furthermore, he discussed the issue with contemporaries like John Witherspoon and James Madison. Hamilton’s primary goal was to establish the nation’s credit, in order to make it easier for people to borrow money.

In his first proposal, he planned to fund the debt at full value to their owners, including those who invested in bonds. Therefore, by establishing a history of repayment, people would gain trust and interest in the Government. Appropriate handling of the government debt would make American citizens more willing to loan money when needed. Hamilton also proposed the creation of a sinking fund that would annually pay off five percent of the debt until it was completely repaid.

During the Revolutionary war, civilians invested in bonds from the soldiers who feared that they would never get their payment from the Government. War veterans had been paid with promissory notes and IOUs that decreased in price, leading them to sell the certificate to civilians. As a result, speculators would make an enormous profit when Hamilton would repay the debt at full value.

When the report was presented to the House of Representatives, members started to point out the flawed system of paying off the domestic debt. Some questioned the program’s resemblance with the British practice and many suspected that several congressmen were themselves speculators, who had bought IOUs and promissory notes from civilians and soldiers. Although Hamilton did not personally own a share in the debt, his associates such as Philip Schuyler and William Duer held government debt. Speculators later attempted to quickly scam those who had not heard about Hamilton’s report on fully funding the debt. Thomas Jefferson argued this was unfair to the original holders of the debt and criticized the fact that Hamilton’s friends were themselves, speculators. Hamilton claimed that speculators at least showed their confidence in the government and wanted it to be successful. He insisted that people who sold their IOUs did not believe that the government would succeed, therefore the government should not owe anything to them. Even James Madison spoke against the report, arguing that the original holders had not lost trust in the government, but sold their securities out of desperation. On February 22, he cast a vote against Hamilton’s report, which was defeated 36 votes to 13. At this point, Hamilton and Madison’s relationship began to deteriorate, as their political views slowly drifted apart.

Furthermore, Hamilton proposed to transfer the debts owed by the individual states to the national government. The debt of the thirteen states accumulated after the Revolution was combined into a single form: federal debt. Again, members of the House of Representatives soon began to criticize it after submission. James Madison complained that most southern states such as Virginia and North Carolina had already paid off their debts from the Revolutionary War. Other states, such as Massachusetts and South Carolina, struggled with heavy debts. He criticized Hamilton’s plan, saying taxes from southern states would be used to pay off debts incurred by northern states. A compromise with Thomas Jefferson arranged that the South would be in favor of Hamilton’s plan, only under the agreement that the nation’s capital was moved south. Hamilton agreed that Philadelphia would be the temporary capital for ten years, followed by a permanent move to a Potomac location in Virginia, eventually named Washington DC. Afterward, Hamilton’s bill passed in the Senate and in the House, to successfully create the federal debt.

5.2 Revenue Cutter Service

Alexander Hamilton is honored as the ‘’Father of the Coast Guard’’, who marked the birth of the United States Coast Guard in 1790. The newly independent nation of the United States was a country struggling with lawless practices. Smuggling and pirating off the coasts were commonplace. In order to collect tariffs, promote the American economy and encourage the new nation’s merchant marine, regaining control of its coasts was desperately needed.

Alexander Hamilton’s solution was to establish a naval police force called revenue cutters. Following Congress and Washington’s approvals, Hamilton suggested the purchase of ten armed cutters. These small or medium-sized vessels would patrol offshore waters and intercept contraband. Each cutter possessed ten muskets and bayonets, twenty pistols, two chisels, one broadax and two lanterns. The first ten vessels patrolled in multiple regions of the United States, from New England to Georgia.

5.3 Excise tax on whiskey

In December 1790, Hamilton proposed an excise tax on whiskey and other distilled spirits, in order to diversify the revenues gathered by the Treasury Department, as three-fourths came from commerce with Great Britain. Hamilton explained that distilled spirits were not a necessity, but a luxury consumed by those who could also afford to pay the tax. Many colleagues supported Hamilton’s idea on a federal tax on distilled spirits, justifying the social benefits of it, such as increased sobriety and disease prevention. The tax charged producers nine cents a gallon on their product while taxing larger distilleries only six cents.

The opposition that initiated the Whiskey Rebellion was the Pennsylvania House of Representatives. Many farmers also argued that it was impossible to sell their alcohol at a profit. Hamilton’s efforts to strongly enforce the tax in Pennsylvania by sending inspectors only sparked up violent protests. Angry farmers threatened and even attacked the tax inspectors. The government quickly summoned a 13.000 men army from Pennsylvania and surrounding states, with George Washington accompanied by Hamilton at their head to meet the protesters. The protesters were quickly intimidated when confronted by the powerful army, ending the rebellion without further actions.

5.4 Report on a National Bank

On December 14, 1790, Hamilton submitted to Congress another report which called to authorize America’s first central bank. Out of all his proposals, the Bank of the United States raised the most questions over constitutionality.

The urgent need for a central bank came from the lack of a uniform currency accepted in all states, the mix of foreign currencies and the requirement of a mint. A bank could improve the handling of foreign exchange, extend credit to government and business, collect revenues and provide a deposit for government funds. Hamilton recommended a capital of ten million dollars, which was to be raised by a combination of government investment and through subscriptions of individual investors. The management of the bank would be performed by a group of twenty-five directors elected by the shareholders. Although Hamilton’s bank shared similarities with the Bank of England, Hamilton’s bank model aimed to exclude the Government from being involved in public debt.

The bank bill successfully passed through Senate but arose questions in the House of Representatives. Critics like Jefferson and Madison argued whether a bank could be established within the Constitution. Members of the House were not influenced by critics and passed the bill on February 8, 1791. President Washington was aware of the unconstitutionality of the bill and hesitated to sign. Nevertheless, he supported it and prepared himself with arguments of its constitutionality from Attorney-General Edmund Randolph and Thomas Jefferson. Both men opposed the need of a national bank and led Washington to write a letter to Hamilton, in which he demanded reasons to sign the bill. Hamilton’s persuasive response convinced Washington, who eventually signed the bill into law.

Following the charter of The Bank of the United States, the flow of money in circulation increased and made more money available for commercial enterprises and investments, powering a growing economy.

5.5 Report on the Mint

On January 28, 1791, Alexander Hamilton handed legislators his Report on the Mint. Even after the Confederation Congress had adopted the dollar as the currency unit, many foreign coins still circulated freely, and counterfeiting was also widespread. To encourage the use of coins, he suggested introducing a wide variety of coins, including gold and silver dollars, a ten-cent silver piece and copper coins of a cent or half cent. Evidently, small coins would benefit the poor. Hamilton’s proposals were accepted in 1792 by the Congress, leading to the Coinage Act of 1792 and the creation of the Unites States Mint.

5.6 Report on Manufactures

Hamilton’s Report on Manufactures was presented to Congress on December 5, 1791. He claimed how important the manufacturing industry was to the economic life and the political independence of the country. Furthermore, he believed that manufacturing countries would always be politically dominant over primarily agrarian countries.

Tench Coxe, a Federalist and proponent of industrialization of the United States, supported Hamilton in writing his Report on Manufacturing by gathering necessary information. Together with Coxe and various entrepreneurs, Hamilton established the Society for the Establishment of Useful Manufactures (SEUM), a private industrial corporation which planned the construction of a town of manufacturing industries. The selected location for the town was situated at the falls of the Passaic River in New Jersey and was named after the current governor of New Jersey, William Paterson.

Unlike Hamilton’s other financial reports, his Report on Manufactures did not gain congressional acceptance. The report was never signed into legislation and did not gain support, due to an atypical lack of effectiveness in Hamilton’s presentation.

5.7 Political parties

As American politics split along regional lines, Madison and Jefferson had begun to organize opposition against Hamilton. A war of words between Hamilton and Jefferson commenced in various newspapers, such as the Gazette of the United States.

Controversy over Hamilton’s reports and programs sparked the formation of the first two-party system in America. The emerging parties were not yet fixed political groups, but factions of individual politicians loosely united by interests. Washington, Hamilton and John Adams belonged to the Federalist side, while Jefferson, Madison and James Monroe on the Republican side. Nevertheless, each denied involvement in parties, since they were considered unacceptable by politicians.

The French Revolution and the war between Britain and France served as a critical point in the development of the two American parties. During this time, the Federalists and Republicans’ ideologies separated increasingly. Though Hamilton sympathized with Great Britain and Jefferson with France, they agreed that a declaration of neutrality was the correct policy. After all, the young country did not even posses a regular navy nor was it capable of combat.

5.8 Jay Treaty

During Britain and France’s war in 1794, America’s trade relationship with Britain developed into a dispute between Republicans and Federalists. Republicans wanted to damage relations with Britain and support a better relationship with France, while Federalists wished exactly the opposite. Following the capture of American vessels in the British West Indies, the need for a new trade treaty between Great Britain and the Unites States increased. To preserve peace at all costs, Washington chose Chief Justice John Jay to be sent on a mission to England to negotiate a trade agreement with England. In addition, Hamilton predominantly wrote Jay’s instructions.

When Jay returned to Philadelphia in 1795, the so-called Jay Treaty was confirmed to be successfully signed. From the Federalists’ perspective, America had won peace with Britain and had gained access to overseas markets. Despite this, Republicans believed that the Jay Treaty was a submission to England and a betrayal of the memorable alliance with France. Nevertheless, the Jay Treaty passed in Congress on June 24, 1795, which granted years of peaceful trade between Britain and the United States.

5.9 Resignation from public office

On December 1, 1794, Hamilton announced Washington that he would surrender his Treasury post in January, following his wife Eliza’s miscarriage during the time of the Whiskey Rebellion. Hamilton intended to leave office with a clean reputation, thus submitting a Report on a Plan for the Further Support of Public Credit before leaving his post on January 31, 1795. He left Philadelphia with a great sense of achievement, having put up a sound national economy against great odds in a time of chaos and uncertainty and against great adversity. Bankrupt when Hamilton joined office, the Unites States now ranked at a credit status comparable to that of a European country. A few months later, Hamilton resumed his law practice in New York City to live closer to his family.

6 Later Years

6.1 Presidential election of 1796

Although many believed that Washington would serve for life, he decided to renounce a third term. The president turned for an to update of his draft Farewell Address to his peer Hamilton, who completed the task with admirable energy.

As Washington’s Vice President for two terms, John Adams was the obvious successor. Following the election in early December 1796, John Adams was elected the new President and Thomas Jefferson the Vice President.

6.2 Affair with Maria Reynolds

In 1797, Alexander Hamilton’s extramarital affair became the first public scandal of this matter, which affected his reputation and private life. Six years earlier, in 1791, the 23-year-old Maria Reynolds approached Alexander Hamilton at his home in Philadelphia to ask for money. She claimed that her husband, James Reynolds, was abusive and had abandoned her. She desired to return to her family in New York, but she lacked the money. Later that evening, Hamilton returned with the requested money to the address she had given him, where she led him into her bedroom. ‘’Some conversation ensued from which it was quick apparent that other than pecuniary consolation would be acceptable’’. Hamilton later wrote, that the periodical affair lasted nearly until June 1792.

James Reynolds knew about the affair and he frequently requested money from Hamilton in exchange for staying quiet. The initial requested sum was one thousand dollars and until 1792, the Reynolds continuously blackmailed Hamilton, demanding an additional three hundred dollars. When James Reynolds was incarcerated for counterfeiting, he claimed to reveal evidence that would incriminate Hamilton, if he was not released from imprisonment. Eventually, a few statesmen who suspected Hamilton of treasury misconduct arranged a meeting with him. Hamilton denied their accusations, revealed his affair and showed them the letters related to blackmail. They understood the situation and expressed regret for having put Hamilton through trouble and embarrassment.

Eventually, a journalist published a pamphlet which accused Hamilton of official misconduct and claimed that James Reynolds was an agent of Hamilton. The Secretary of Treasury responded with a report known as The Reynolds Pamphlet in which he denied the journalist’s accusations of pecuniary impropriety. He continued by confessing his intimate affair with Maria Reynolds and exposing James Reynolds of blackmailing him. Indeed, Hamilton saved his career and his marriage with Eliza survived the affair.

6.3 Quasi-War

In 1798, at the beginning of John Adam’s presidency, an undeclared war fought mostly at sea between the United States and France broke out. Following the Jay Treaty’s enactment, France felt betrayed. Not only were the United States actively trading with their enemy, but America had also stopped repaying its large debt to France after the French crown had been overturned. In response, France commenced captures and attacks on American ships.

Since Washington’s age and physical condition would not permit him to reenlist in the army, he chose Alexander Hamilton to be the Inspector General. With the role of the commander of the armies, Hamilton proposed a hostile plan that still left room for further negotiations with France. To prepare the country against a possible French invasion, Hamilton recommended an immediate increase in naval power and a standing army for 20.000 men. President Adams accepted Hamilton’s ideas, but tried to delay any attack on France. He opened negotiations with France, by sending a three-man commission of diplomats to France. After months of discussions with Napoleon Bonaparte, a compromise agreement was reached between the countries in October 1800, leading to long-lasting peace.

6.4 Presidential election of 1800

Hamilton feared the rise of the Republican supremacy in the 1800 presidential election. Hamilton did not only plan to defeat the rival Republican candidates, Thomas Jefferson and Aaron Burr, but also his own party’s nominee, John Adams. His strategy was to shift Federalist support from Adams to General Pinckney, a statesman of South Carolina, by circulating a letter critical of John Adams. However, he only divided the Federalists and assured Thomas Jefferson of victory. When the electoral votes were counted, both Jefferson and Burr had beaten Adams and Pinckney, by tying at 73 votes each. Later, the House of Representatives elected Thomas Jefferson as President and Aaron Burr as Vice President. The election of 1800 marked the ascendancy of the Republican party and the collapse of the Federalist party in the political system of the United States.

6.5 Duel with Burr

Following the 1804 election, Alexander Hamilton rejoiced at the news that his Republican enemy Aaron Burr had lost his Vice President office. After Charles D. Cooper, a Republican politician, intercepted information about Hamilton’s dislike towards Burr, he published a notice in a newspaper, which divulged Hamilton’s opinions. Burr soon demanded an explanation or an apology letter from Hamilton, after sensing that his honor was insulted. Hamilton responded and refused to take back any insult, resulting to an agreement from both men to arrange a duel on the morning of July 11, 1804.

Both men arrived at the dueling ground, Weehawken, accompanied by their seconds at around seven in the morning. Hamilton suggested in his last letters, that he planned to miss his shot on purpose. After the shots were fired, the seconds gave contradictory details of what had happened, whether he had shot unsuccessfully by accident after being hit by Burr or whether Hamilton had missed on purpose. Regardless, Hamilton missed, but Burr’s shot hit Hamilton in the abdomen, causing major damage to his internal organs and lodging in his spine. Hamilton was transported back to Manhattan, surviving for approximately 31 hours. He died on July 12, 1804, in the presence of his family and friends.

7 Eliza

7.1 Marriage

While working on Washington’s staff, Hamilton attended fancy-dress balls in Morristown, where he had the chance to meet and socialize with women. At this occasion, he met Elizabeth Schuyler, a daughter of General Philip Schuyler, one of New York’s most powerful men. Soon, after a month of relationship the two married on December 14, 1780, at the Schuyler Mansion in Albany, New York.

During the winter when Hamilton met Eliza, he was also introduced to her older sister, Angelica. The attraction between them was immediate and many rumored that an affair with his wife’s older married sister was possible.

Elizabeth and Alexander Hamilton had eight children together. The couple also brought up an orphan child, named Fanny. Eliza always showed a dedication in helping families in need. For instance, she frequently sent off packages of food and clothing to refugee families. This previewed her later dedication to the cause of widows and orphans in New York City.

7.2 Later life

Within the span of a few years, Eliza Hamilton had to cope with five deaths: her eldest son, her sister Peggy, her mother and her husband. Later, the news of Hamilton’s death weakened Eliza’s father, Philip Schuyler, who ultimately died too. The widow inherited little money and the burden to pay Hamilton’s debt. Fortunately, many of Hamilton’s friends organized a secret fund which saved Eliza and her children from the financial struggle.

Along with her friend Isabella Graham and other women, they joined the Society for the Relief of Poor Widows with Small Children. Following the massive grief in her life, Eliza joined the revolutionary project of building the first orphanage in New York. The Orphan Asylum Society, the first charitable orphanage in New York, was founded on March 15, 1806. Eliza was elected second directress, essentially the organization’s founding vice president. Later, she was named first directress of the orphanage in 1821 and kept this duty for twenty-seven more years.

Eliza was aware of her husband’s political and financial ideas. Throughout Alexander’s career, she frequently helped him write and revise essays and letters. She gave her opinions on several of Hamilton’s writing, including the Federalist Papers and Washington’s Farewell Address. After his death, she dedicated decades of her life to preserving her husband’s legacy. Together with her son, John Church Hamilton, they re-organized Alexander’s papers and letters. Eliza’s most ardent desire was to get Alexander Hamilton’s biography published.

Eliza Hamilton died in Washington, D.C. on November 9, 1854. At the age of ninety-seven, she had outlived her husband by fifty years. Eliza was buried near her husband in the graveyard of Trinity Church in New York City.

8 Legacy in Society and Popular Culture

8.1 Memorials

Since the 1860s, Alexander Hamilton’s portrait has appeared several times on the Unites States currency, for instance the $2, $5, $10, $20, $50 and $1000 bill. Today, Hamilton’s portrait has remained on the front of the U.S. $10 bill. In 2015, the United States Treasury announced the decision to replace Hamilton’s portrait on the $10 bill with that of a woman, but the decision was revoked due to the success of the Broadway musical Hamilton.

Figure 15, Alexander Hamilton on the $10 bill

The only house that Alexander Hamilton ever owner was called ‘’The Grange’’. He commissioned architect John McComb Jr. to design a Federal-style home on Hamilton’s 32-acre estate. After its completion in 1802, Hamilton only lived at The Grange for two years. Eliza and her children occupied the home until 1833, when the family sold the house and bought a new house in Lower Manhattan. In 2008, The Grange was moved to its third location at St. Nicholas Park in the Hamilton Heights. Today, the house is a National Memorial, which is open to the public.

8.2 Slavery

Alexander Hamilton spent his childhood in the environment of the West Indies, where slavery was present on most islands at that time. Of what is known, he has not ever owned slaves. Some family members though, such as his mother Rachel Faucette, were slave owners. In her will, Faucette leaves her two slaves named Christian and Ajax to her sons. However, the court ruled that that two illegitimate children had no right to inherit any possession. Later in his teenage years, Hamilton worked for a trading firm on St. Croix named Beekman and Cruger Company. The company handled various exchanges, one of them being African slaves. As he approached adulthood, he increasingly grew to dislike slavery and his abolitionist awareness quickly appeared.

During the Revolutionary War, Hamilton actively recruited black troops for the army, with the promise of freedom. Eventually, five thousand African Americans fought along the American side. In 1785 Hamilton joined his colleague John Jay in establishing the main anti-slavery organization in New York, named The New York Manumission Society. The organization successfully worked towards emancipation by passing a state law, with an end to slavery in the state on July 4, 1827.

Many Caucasian leaders, such as Thomas Jefferson, doubted African Americans’ mental and moral abilities. Hamilton refused to accept the illogical racial distinction that many of his colleagues believed in. In an instance, he expressed: ‘’their natural faculties are as good as ours.’’

8.3 Broadway Musical

Hamilton: An American Musical, is a musical about the life of American Founding Father Alexander Hamilton, with lyrics and music by Lin-Manuel Miranda. It premiered on July 13, 2015, in previews, and opened on August 6, 2015. Miranda’s inspiration for the musical came after reading the biography Alexander Hamilton by Ron Chernow. The show combines mostly hip hop and pop music genres and the cast is purposefully racially diverse. It has been praised by critics and it has received many awards and nominations.

Figure 17, Scene from Hamilton: An American Musical

9 Conclusion

Alexander Hamilton was most likely born on January 11, 1757, although some other sources claim his year of birth as 1755. As a child, his formal education on the islands of Nevis and St. Croix in the British West Indies was minimal. Following his mother’s death, Hamilton was persuaded to leave for New York City.

The Revolutionary War commenced during Hamilton’s college education at King’s College. He joined the military and quickly became one of General George Washington’s military aides. After the colonies gained independence from the British, Hamilton participated as a delegate at the Constitutional Convention and signed the Constitution of the United States. Later, he wrote a series of essays called The Federalist Papers, encouraging the nation to ratify the Constitution. When George Washington became the first president of the United States in 1790, he chose Alexander Hamilton to be his first Secretary of Treasury.

As Secretary, Hamilton wrote five pivotal reports that established American financial policy. Through the creation of the first National Bank of the United States and the success of his financial plan, Alexander Hamilton saved an entire nation from economic collapse. Without his intervention, the success of the newly established United States of America would not have been possible. He accomplished his plan almost flawlessly and left behind a legacy which left its mark on today’s financial practices. Nevertheless, his progressive views on racial equality and economic diversity were so far ahead of their time that it took the United States of America decades to catch up with them.

Why is Alexander Hamilton the forgotten Founding Father? During the years following his tragic death in a duel with Aaron Burr, the first draft of history was being written. Since Hamilton’s critics were the ones writing it, his role tended to be minimalized and unfavorably viewed. Furthermore, the way that the United States history is taught is very President centric. Even in a classroom, Founding Fathers like Hamilton, who had never achieved the highest office, rarely get more than a few sentences.

However, over the past decade, the Founding Fathers have been honored a renaissance. With new and more accurate biographies being published, the truthful history of founders like Alexander Hamilton is coming to light.

Table of Figures

Figure 1, Hamilton in his youth (Library of Congress, 2004) 6

Figure 2, Alexander Hamilton’s hurricane letter, which has survived (Hamilton, 1772, p. 2) 8

Figure 3, Illustration of King's College, about 1773 (Hemstreet, 1903) 9

Figure 4, Alexander Hamilton in the Uniform of the New York Artillery (Chappel, 1828-1887) 10

Figure 5, The Aides-de-Camp office at Washington’s Headquarters (National Park Service, 2017) 11

Figure 6, Scene at the Signing of the Constitution of the United States (Christy, 1940) 15

Figure 7, Full-length portrait of Alexander Hamilton (Trumbull, 1792) 17

Figure 8, Revenue Cutter Service (U.S. Coast Guard illustration, 19th century) 19

Figure 9, One of the first coins minted under the coinage act of 1792 (Hobson, 1971) 21

Figure 10, Pamphlet containing text of Jay Treaty (Neale and Kammerer, 1795) 23

Figure 11, Portrait of Alexander Hamilton (Ames, 1802) 24

Figure 12, Drawing of the Burr-Hamilton duel (Mund, 1804) 27

Figure 13, Portrait of Elizabeth Schuyler (Earl, 1787) 28

Figure 14, Portrait of Elizabeth Hamilton (Inman, 1825) 29

Figure 15, Alexander Hamilton on the $10 bill (US Government, 2004) 30

Figure 16, Drawing of The Grange before 1889 (Langmann, 1889) 30

Figure 17, Scene from Hamilton: An American Musical (Lawler, 2016) 32