This was what the country expected would be done; and so low was the hope of payment that creditors could be found who were willing to compromise their claims for ten cents on the dollar.  Robert Morris, who had managed the finances during the period of the Confederation, utterly refused to attempt the task again, but he named a man who, he said, could bring order out of chaos, if any living man could.  That man was Alexander Hamilton.  Washington appealed to Hamilton, offering him the position of Secretary of the Treasury.  Hamilton, aged thirty-two, gave up his law practise, which was yielding him ten thousand a year, to accept this office which paid three thousand five hundred.  Before the British cannon, Washington did not lose heart, but to face the angry mob of creditors waving white-paper claims made him quake; but with Hamilton’s presence his courage came back.

The first thing that Hamilton decided upon was that there should be no repudiation—­no offer of compromise would be considered—­every man should be paid in full.  And further than this, the general government would assume the entire war debt of each individual State.  Washington concurred with Hamilton on these points, but he could make neither oral nor written argument in a way that would convince others; so this task was left to Hamilton.  Hamilton appeared before Congress and explained his plans—­explained them so lucidly and with such force and precision that he made an indelible impression.  There were grumblers and complainers, but these did not and could not reply to Hamilton, for he saw all over and around the subject, and they saw it only at an angle.  Hamilton had studied the history of finance, and knew the financial schemes of every country.  No question of statecraft could be asked him for which he did not have a reply ready.  He knew the science of government as no other man in America then did, and recognizing this, Congress asked him to prepare reports on the collection of revenue, the coasting trade, the effects of a tariff, shipbuilding, post-office extension, and also a scheme for a judicial system.  When in doubt they asked Hamilton.

And all the time Hamilton was working at this bewildering maze of detail, he was evolving that financial policy, broad, comprehensive and minute, which endures even to this day, even to the various forms of accounts that are now kept at the Treasury Department at Washington.

His insistence that to preserve the credit of a nation every debt must be paid, is an idea that no statesman now dare question.  The entire aim and intent of his policy was high, open and frank honesty.  The people should be made to feel an absolute security in their government, and this being so, all forms of industry would prosper, “and the prosperity of the people is the prosperity of the Nation.”  To such a degree of confidence did Hamilton raise the public credit that in a very short time the government found no trouble in borrowing all the money it needed at four per cent; and yet this was done in face of the fact that its debt had increased.