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Artificial Intelligence, Alexander Hamilton, and The Funding Act of 1790…
March 13, 2025 by GuyHeilenman · Leave a Comment
“A jack of all trades, a master of none” is often how I feel in my role as the overseer of life at Timothy Hughes Rare & Early Newspapers. Since collectible reporting covers nearly every topic under the sun (politics, religion, flight, exploration, literature, social issues, war, and more), it is impossible to know everything about everything. Even the areas which are personal favorites are more than enough to drive my quest to be a life-long learner. One such topic involves the early years of American and the “Founding” of The United States. Still, my nearly 7 decades of knowledge-absorption still leaves me wanting. A case in point was recently brought to the surface by a set of 4 issues covering The Funding Act of 1790. I knew the father of the Act was largely Alexander Hamilton and that it was an essential step in the early formation of the U.S., but beyond these basic elements, I admittedly knew little. Since our desire when describing collectible items is to be as accurate as possible, whenever I/we would be presented with a knowledge gap “back in the day”, our bookshelves full of resource material was essential – but cumbersome. Then the internet came alive and our ability to gather information was drastically reduced – especially once we gathered a repertoire of reliable sources. BUT NOW…
The question of the day: “How reliable/accurate is AI?” Only time will tell, but I thought it might be fun to seek a little input as it relates to the topic at hand. I did a basic (“think”) search on Grok (Elon Musk’s AI) for: “Why was the 1790 Funding Act so significant?” The response was:
The 1790 Funding Act was a landmark piece of legislation in United States history, playing a pivotal role in shaping the young nation’s financial and political landscape. Proposed by Alexander Hamilton, the first Treasury Secretary, the act addressed the massive debt accumulated during the Revolutionary War by consolidating state debts under federal control and funding them at full value. Its significance can be understood through several key aspects:
(by John Trumbull)
### 1. **Debt Consolidation and Federal Authority**
The act allowed the federal government to assume the debts of individual states, centralizing financial responsibility. This move stabilized the economy by creating a unified approach to debt management. While controversial—some states that had already paid off their debts opposed subsidizing others—it strengthened the federal government’s authority over the states, marking a shift toward a more centralized system.
### 2. **Establishment of National Credit**
By issuing bonds to pay off old debts and funding them through tariffs and excise taxes, the Funding Act established the United States as a credible borrower. This was critical for gaining the trust of international creditors and investors, laying the foundation for future economic growth. It demonstrated that the U.S. could honor its financial obligations, a vital step for a fledgling nation.
### 3. **Foundation for a National Economy**
The act was a cornerstone of Hamilton’s broader financial vision, which included creating a national bank to manage government finances and issue currency. By addressing the debt crisis and introducing federal taxation, it set the stage for a stable, centralized financial system. This stability was essential for the nation’s economic development and influenced future fiscal policies.
### 4. **Political Impact**
The Funding Act deepened the divide between Federalists, who favored a strong central government, and Democratic-Republicans, who worried about federal overreach. This ideological conflict shaped early American politics and highlighted the act’s role in defining the balance of power between federal and state governments.
In summary, the 1790 Funding Act was significant because it marked the federal government’s first major step into financial governance, resolving the post-war debt crisis while establishing the U.S. as a financially credible nation. It solidified federal authority, built a foundation for economic stability, and influenced the political and economic trajectory of the United States for decades to come.
How did Grok do? Did it miss anything of critical significance?
If so, perhaps you would like to review Grok’s “DeepSearch“.
I’ll admit, AI makes me more than a little nervous; however, if properly constrained… Ok, I’d still be more than a little nervous.
Thoughts?
The Traveler… spreading the word… named director…
May 16, 2016 by The Traveler · 2 Comments
Today I journeyed to New York City by the way of the New-York Spectator of May 15, 1816. There I found the announcement of the formation of “The American Bible Society” which still exist today. Some of the founding/early members include Elias Boudinot, who had been President of the Continental Congress from 1782 to 1783, John Jay, the first Chief Justice of the U.S. Supreme Court, Frederick Theodore Frelinghuysen, Daniel Coit Gilman, Edwin Francis Hyde, and Francis Scott Key. The front page report announced the formation of the organization and the third page report contained their resolutions. “… The leading feature of the constitution limits the operations… to the distribution of the bible without note or comment…”.
Also in the issue is an article “Bank of the United States” in which “The President and Senate have appointed the following named, Directors of the Bank of the United States… John Jacob Astor, of the city of New-York…”. Mr. Astor was known as the first prominent member of the Astor family, the first multi-millionaire in the United States and the fifth-richest man in American history.
~The Traveler
What did they do to false prophets? 1929 predicted to be a banner financial year…
April 7, 2016 by GuyHeilenman · Leave a Comment
How ironic… In what was to become known as the worst financial year in U.S. history, it is interesting to read The New York Time, January 3, 1929 front page article headed: “Stock Market Opens 1929 With Buying Rush; 5,413,610-Share Day Stirs Hope of Big Year”. Could they have been more wrong? It sure is good this NY Times writer was not graded as a Hebrew prophet – or he/she would likely have joined the throngs who brought about their own demise in late October of the same year during The Great Stock Market Crash of 1929.
The Traveler… finally ratified… income tax a reality…
February 4, 2013 by The Traveler · Leave a Comment
Today I traveled to Salt Lake City, Utah, by the way of the Deseret Semi-Weekly News, February 3, 1913. There I found that on this very same date, the Sixteenth Amendment to the United States Constitution had just been ratified by the voted received from the Wyoming legislature. This amendment now established Income Tax as a provision of the Constitution.
This passing, which required a three-quarter of the Union approval, took a long time to occur as Alabama was the first state to ratify the amendment and that was on August 10, 1909!
Now with this information, enjoy your remaining seventy (70) days of the tax season. April 15th will be here before we all know it!
~The Traveler
“A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy…”
– Alexander Tytler 1787 (disputed origin)