History and Present Condition of American Finance

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History and Present Condition of American Finance
American finance is one of the critical areas for study since it allows one to understand historical finance and its influence in the present. When one talks about American finance, it refers to significant ways of managing money and effective activities such as forecasting, saving, budgeting, lending, borrowing, and investing the country considers. Finance is essential for America since it determines all the operations and country positions to take care of all the money-related plans and financial positions. Finance is the management and study of money by properly focusing on appropriate financial information (Block et al.). American finance can be classified into two main categories. They include debit and equity finance. Debt finance is the cash the country acquires to maintain its operations from different resources, such as the World Bank. Debt finance does not provide any significant control to the country. The second grouping of equity finance involves equity finance. It is based on Americans' processes to raise money for its operations effectively. Therefore, American finance's historical and present policies revolve around the identified types of finance. Other types of finance which are also significant include private finance, corporate finance, personal finance, and public finance (Siminica et al.). Financial policies are specific regulations, oversight, and supervision of financial activities. The paper probes American finance's history and present condition focusing on Alexander Hamilton, the father of American finance and policies.
The Historical Condition of American Finance
The origin of American finance resulted from a meeting between James Madison and Alexander Hamilton in New York in 1790 (Cowen and Richard). After a lengthy meeting, the two individuals focused on war debt under the United States' revolutionary wing. The two patriots decided to relocate the capital of the United States and the American banks. Regardless of the political aspect of the two individuals, the main aim was to mobilize resources towards one area which could be easily managed and advocated for whenever any issue arises. The process was also supported by George Washington, one of the American political figures. The main issue with American finance at that time was bankruptcy. Hamilton and Madison offered adequate to George Washington, the American president, to restructure the country's finance by focusing on a better tax policy and the war on American debt. The identified activities made the federal government actively participate in the financial market and economic development. The actions by the three individuals under the strict supervision of Hamilton made American finance develop within a short period.
Hamilton played a crucial role in shaping American finance through a well-established pragmatic vision. He recognized that constitution had to supplement to make the American government strong. The only way was to ensure that America had a robust financial system with consistent equity finance. Hamilton used his pragmatic vision to lay a specific program of regenerating American finance by considering manufactures, a nation...