The American Revolution was the most important war in American history, but it was also quite expensive.  Upon gaining its independence, America had an excessive amount of debt, a majority of which was taken on by individual states.  The problem of individual state debt was made even worse by the fact that there was no standard American currency.  As these pressing, financial issues became apparent, Alexander Hamilton worked to create a solution.

On this date, February 1, in 1790, the American government issued $80 million in federal bonds to refinance Revolutionary War debts.  The program was created by Treasury Secretary, Alexander Hamilton.  In addition to the obvious financial benefits of Alexander Hamilton’s debt refinancing, the solution had the added benefit of establishing the federal government’s power over the states.   This event was the first instance of public traded securities in United States history.

The government had to create new tariffs, such as the Whiskey Tax, in order to complete the war debt refinancing, but the refinancing of the country’s debt is an important part of American history.  The event played a large role in rebuilding America’s financial structure.  Soon after refinancing the country’s war debt, the federal government would become stable enough to develop the Constitution and Bill of Rights.