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In his plan, ?Federal stocks would circulate as money, thus making capital more plentiful and readily available.?(http://odur.let.rug.nl/~usa/B/hamilton/hamil20.htm). This encouraged prospective investors to start companies and invest by placing a once stagnate sum of capital back into circulation, thus making it easier to obtain seed money, often through loans, with which to grow their new business...
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The payment and trading of federal securities or bonds as they are called now is still in practice today and has helped many people begin new enterprises, thereby helping economy of the United States to grow and become strong.
The next issue addressed in the Report Relative to a Provision for the Support of Public Credit was that of the assumption of state debt by the national government...
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Hamilton The Economist
Federal Reserve Bank Changing Money Supply
Federal Reserve and Money Supply
Federal Reserve; Bonds verses Stocks
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Making Capital Budgeting and Capital Structure Decisions
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Making Money From Inflation
Making Money Work
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