History has a tendency to repeat itself. America from 1783 to 1800 had faced political, economic, and social problems that Great Britain had faced prior to the American Revolution with their relations with the colonies. After the Revolutionary War, Americans and British governments suffered economically from faced huge national debts that were also added by French and Indian War which later leads to collecting of taxes and uprising of the National Bank to help bring in this lost revenue. Even after America won her freedom from Britain, foreign nations seemed to ignore and abuse the new nation. Some of these countries that caused problems in the Western frontier were Spain, Britain, and France.
In both countries, there was also a rise in different sects socially that led to many controversial problems. Britain dealt with similar issues America did after the Revolutionary War while the country was trying to glue pieces to together to make an ideal government. American and Britain suffered from debt from the French and Indian War and Revolutionary War which hurt both countries hard economically. At the Philadelphia Conference, Alexander Hamilton addressed the problem of debt and shared his plans that could help the country relieve some of it.
Hamilton, a Federalist, felt that debt was sinking the confederation and this Nationalist leader viewed it as an opportunity to enlarge national power. Since the Confederation had gone bankrupt it had poor credit among the foreign investors and needed a way to earn this money back. So he decided that he must first pay back foreign creditors but only paying a small amount each year which lead them to pass the duty tax on Whiskey. In 1791 Washington passed the Whiskey tax which the westerns found to be unfair but this was all part of the great plan to raise revenue.
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Shortly after, a rebellion broke out and the government took military control showing that they weren’t tolerating resistance to federal laws. Hamilton’s “assumption plan” included the national government in assuming the state’s debts as well to gain more investors. The Philadelphia’s Bank of North America was founded in 1781 which expanded the money supply and increased the commercial growth. A major stockholder received dividends in the company which was helped pay off national debt. Although many people disagreed with this plan of a National bank because they felt it was unconstitutional, when it was finally set up it proved that it would be a success.
After the American Constitution was set up, across the states you began to see the starting of new sects in the government with different ideas on policies.