With the War for Independence ending in 1783, America was about to embark on a period of transition: the country had to come up with a unified system of government and create a viable, long-term economic plan. To meet this challenge, the United States turned to one of the most influential Founding Fathers—Alexander Hamilton. He developed the ground-breaking Financial Plan, which established the basis for America’s economic system and provided the country with a stable and sound foundation.

Hamilton’s Financial Plan was his attempt to create a coherent and unified system for the United States. He had three main goals—to pay off the country’s wartime debt, create a unified system of taxation, and establish a sound corporate system. Hamilton proposed that the central government assume the debts of each of the warring states, and, through taxes, repay these debts over time. To raise funds, he proposed an excise tax on distilled spirits and a tariff (import tax) on select imported goods for both foreign and domestic use.

In setting up the corporate system, Hamilton advanced the idea of having corporations sold with the intention of having them become distinct and independent from the government. This separated the new country’s economy