Today as our nation seemingly faces a financial crisis, business leaders are calling on the government and Federal Reserve to come to the aid of the economy. They insist that the government has a responsibility to act. Dissenters are either few in numbers or simply not being heard. Certainly the call for action is loud and vocal.

The call for action by the federal government and our central banking system runs counter to our popular culture of individualism and self reliance, which translates in buiness language to private enterprise and the selfsustaining entrepreneur making it on own entirely through his personal efforts. While this vision of our society has validity, we have another and different heritage, one of economic enterdependence, positive government, and a role for government in our economy, especially during times of financial difficulty.

The view that government should participate in economic affairs has its roots in the very foundation of our nation. It is indeed as old as our country itself.

The early champion of government involvement in the economy was our first Secretary of Treasury Alexander Hamilton. Hamilton thought that the way to strengthen the government and economy was to gain the support of the moneyed classes. He had a pragmatic view of human nature believing that people were motivated by self interest. The way to get them to support the federal government was to make it to their benefit to have a government actively participating in economic affairs.

Hamilton wanted the wealthy class to look to the federal government for protection. To accomplish this goal, he was convinced that the government had to pay its debts and establish a sound credit and currency system. He wanted public debt assumed and funded by the federal government. Federal assumption and funding of public debt would assure support of the federal government by the wealthy class.

Crucial to Hamilton's plan was the establishment of a national bank. At that time, the nation had only a few banks, all located in major eastern cities. A national bank would have several advantages. It would come to the aid of business leaders by providing loans and bank notes, which were in effect a federal currency. It would also create a safe place to deposit federal funds raise through taxes and the sale of government bonds. Chartered by the federal government, the bank possessed a monopoly of federal banking. Hamilton's bank was controversial and many considered it

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