The Hamilton Scheme: An Epic Tale of Money and Power in the American Founding, by William Hogeland, Farrar, Straus and Giroux, 544 pages, $35
Over the past two decades, Alexander Hamilton has risen to folk hero status. From Ron Chernow’s bestselling biography in 2004 to Lin-Manuel Miranda’s Hamilton: An American Musical, Hamilton’s popularity has soared despite inaccuracies. Recent articles in The New York Times and Bloomberg celebrate President Joe Biden’s economic initiatives as “Hamiltonian.”
William Hogeland’s The Hamilton Scheme aligns with Murray Rothbard’s critical view of Hamilton’s industrial policy. Hogeland, known for his well-respected works in early U.S. history, focuses on Hamilton’s policies and supporters, critiquing portrayals by Chernow and Miranda.
Hogeland’s analysis of tax revolts and conflicts in American history offers a unique perspective, highlighting the Newburgh Conspiracy and Hamilton’s role in it. He delves into Hamilton’s monarchist tendencies revealed at the Constitutional Convention and his financial acumen as treasury secretary.
Despite Hamilton’s brilliance, his complex financial reports and strategies faced criticism. His efforts to establish a national bank and industrial policy through the Society for the Establishment of Useful Manufactures are explored in depth.
The plan ultimately failed, partially due to the reckless speculation of Alexander Hamilton’s close associate William Duer. Hogeland, who supports government intervention, opposes Hamilton’s schemes because they would have created cartels benefiting the wealthy at the expense of small competitors.
Hogeland’s book highlights the Whiskey Rebellion, revealing Hamilton’s regressive tax designed to favor large producers over small distillers. The rebellion, initially violent in Pennsylvania, was subdued by Washington’s militia under Hamilton’s direction, despite efforts by Gallatin, Findley, and Husband to pacify the situation.
Hamilton’s reign of terror during the rebellion included arrests without charges and violations of the Bill of Rights. Although some individuals suffered, including Husband who died in prison, Gallatin later dismantled much of Hamilton’s financial system and reduced the national debt significantly.
Gallatin’s financial brilliance, often overlooked, is showcased in the book. The article sheds new light on Hamilton’s character, portraying him as an ambitious and overbearing figure.
(CORRECTION: Albert Gallatin’s order of holding different public offices was originally misstated in this article.)
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