Alexander Hamilton had begun the political and …

Years: 1792 - 1792
March
Alexander Hamilton had begun the political and economic maneuvering in mid-March 1792 necessary to contain the credit crisis affecting markets across the country.

The charter creating the Bank of the United States had also set up the Sinking Fund Commission composed of Vice President John Adams, Secretary of State Thomas Jefferson, Attorney General Edmund Randolph, Chief Justice John Jay, and Secretary of the Treasury Alexander Hamilton, charged with resolving financial crises.

On March 21, 1792, with Jay absent from voting, the commission had split on the decision to allow open-market purchases.

Having received notice from William Seton that the Bank of New York is in trouble, Hamilton wishes to have the government make purchases as it had in 1791, but is unable to do so while Jefferson and Randolph stand opposed.

While still waiting for Jay’s formal and deciding vote, Randolph begins to side with Hamilton on March 26, and with only Jefferson dissenting, the commission authorizes one hundred thousand dollars in open-market purchases of securities.

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