Alexander Hamilton’s financial acumen was on display throughout his life, including his founding of the Bank of New York in 1784, the oldest ongoing banking organization in the United States.

Considered an astute politician, brilliant lawyer, Constitution scholar (as co-author of he Federalist Papers), and America’s founding patron of economic policy, the first Secretary Treasurer of the United States, Alexander Hamilton was born on the island of Nevis, this week on January 11th, 1755.

As an illegitimate son, and eventual orphan, Hamilton’s early hardships and intelligence aroused his West Indies’ neighbors’ sympathies to pay for his college prep education in New Jersey (1773). He also attended Kings College in 1774 (Columbia University) in New York where he later joined the local militia, following the British battle with American troops in Boston. During the War, he quickly distinguished himself for his bravery, intelligence and tactical skills… and rose to the ranks of Lieutenant Colonel as aide-de campe for life long friend, General George Washington, and later headed three battalions at the decisive battle of Yorktown.

Given the young nation’s War funding since the young nation’s currency weren’t “…worth a Continental,” Hamilton devised a plan and persuaded Congress to “unite the interest and credit of rich individuals and those of the state” by outlining the plan for what became the first Bank of America. Essentially, the chartered Bank under Philadelphian Robert Morris leadership, lent the struggling nation money in return for interest payments.

Hamilton’s financial acumen was on display throughout his life including his founding of the Bank of New York (1784) the oldest ongoing banking organization in the United States. As Secretary Treasurer (1789-1795) he personally went to the floor of the United Sates Congress several times- arguing for many national programs, including the federal assumption of states’ debt for War costs and how to pay for it (at odds with the among others, agrarian southerner, Thomas Jefferson). The compromise led to permanently moving the nation’s capital to the south- along the Potomac River. Hamilton also illustrated the future of the country’s industrial society in his groundbreaking Report On Manufactures, helped establish the U.S. Mint and the Revenue Cutter Service (the U.S. Coast Guard), and systematically organized the financial chaos of the burgeoning nation.

Hamilton died on July 12th 1804, after a duel with Aaron Burr. His image has appeared on various denominations of American dollar bills since the American Civil War.

This Week in Wall Street History

1/7/08