Alexander Hamilton played a pivotal role in establishing America's financial system, going far beyond what's portrayed in the popular Broadway musical. His influence continues to shape modern American finance and banking.

As the first U.S. Treasury Secretary, Hamilton established crucial financial foundations:

• Created the first central bank
• Founded The Bank of New York (now BNY Mellon)
• Established Wall Street as a financial center
• Implemented the "funding and assumption" plan to manage national debt

The Bank of New York, founded in 1784, helped solve the early nation's financing challenges. At the time, the Continental currency had become nearly worthless, and the only commercial bank was 100 miles away in Philadelphia.

Hamilton's "funding and assumption" plan proved controversial but effective. The federal government would:

• Honor country's debts at face value
• Assume state obligations (estimated at $25 million)
• Establish national creditworthiness
• Replace existing notes with Treasury securities

Hamilton's financial system wasn't without controversy. Two major incidents shaped early Wall Street:

1. Insider trading allegations during the funding and assumption plan
2. The first Wall Street panic in 1792, triggered by William Duer's speculation

Critical Lasting Impacts:

• Established precedent for government debt payment
• Created close relationship between finance and government
• Led to foundation of New York Stock Exchange through Buttonwood Agreement
• Set framework for modern American banking system

The Bank of New York survives today as BNY Mellon, while its historical rival, the Manhattan Company (founded by Aaron Burr), eventually became part of JPMorgan Chase.

Hamilton's legacy established America's financial credibility and created systems that continue to influence global markets today. While controversial at times, his vision helped transform America from a destitute nation into a powerful engine of commerce.

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