Hamilton's America Page #8

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first Coast Guard,

first monetary policy,

first central bank,

which was the direct forerunner

of the Federal Reserve.

-Hamilton had the core idea

about an aggressive role

for government

to help build an economy.

-Hamilton created

financial instruments

that enabled people to trade

and, therefore, facilitate

the movement of capital.

[ Bell clanging ]

-While Hamilton was

treasury secretary,

there were only five securities

traded on Wall Street.

Three of them

were treasury securities

created by Alexander Hamilton.

The fourth was the stock

of the Bank of New York,

created by Alexander Hamilton.

The fifth was the stock

of our first central bank

created by -- you know who --

Alexander Hamilton.

-I look at Alexander Hamilton

as the patron saint

of Wall Street.

-We're on the floor. This is --

-Yeah, it was --

-We're living

in Hamilton's world here.

-It's true.

And, you know, as I was coming

down to meet you this morning...

-Uh-huh.

-...I got the chills.

When you're actually here

and you just visualize

what was taking place

200 years ago,

it's quite extraordinary.

-The problem was, Hamilton

was the ultimate elitist.

He came from

a very humble background,

but he built an institution

that concentrated wealth.

-If you've lived through

a period

where the financial system

has caused a lot of damage

to the economy,

there's this fear --

fear over concentrated

power and wealth

and fear of the unfairness

that might bring.

And Hamilton's defining strength

was to try to figure out

what was the pragmatic solution

in the interest

of the most people.

-What happens here has a direct

impact on all of our lives.

We're all connected.

And the fact is,

is if you want that bridge

built around the block

from that school

in your neighborhood,

you've got to raise money

to do it.

More often than not,

it's gonna be raised right here.

-Hamilton is picturing

this robust,

strong central government

that is the engine of finance

and engine of democracy

and unites our states.

Jefferson is picturing

this agrarian paradise,

where farmers are left alone

and do their thing.

-One could say

that Jefferson was --

could represent the populist

interests at the time,

the small farmer,

the people living

out in the country.

But were they forecasting

a philosophical divide

that runs through

our political system?

Absolutely.

-It becomes really clear --

and Washington realizes this

finally in 1792 --

things are not going so well

between the two members

of his Cabinet.

-So, we're in

the mansion's dining room,

and it's set

for the 1790 dinner party

of George Washington

and his Cabinet.

-It's set for that now?

-It is set for that.

If they walked in right now,

they would be ready.

-A lot of people don't know that

the fight over the debt plan

and establishing

a national bank...

-Mm-hmm.

-... happened here.

- The issue on the table

Secretary Hamilton's plan

to assume state debt

And establish

a national bank

Uh, Secretary Jefferson,

you have the floor, sir

-The states had borrowed

heavily from the French,

from the Spanish,

from domestic lenders

to fund the cost of the war,

and there were

these big debts.

-There was $50 million

in outstanding federal debt,

$25 million in state debt,

and Hamilton wanted

the federal government

to assume the responsibility

for the state debt.

- Oww

- But Hamilton forgets,

his plan would have

The government assume

states' debts

Now, place your bets

as to who that benefits

The very seat of government

where Hamilton sits

- Not true

- Ew

If the shoe fits, wear it

If New York's in debt,

why should Virginia bear it?

Uh, our debts are paid,

I'm afraid

Don't tax the South 'cause

we got it made in the shade

-Jefferson's position is,

"The Southern states

have ways of making income.

It doesn't make sense for us

to bail you guys out."

Hamilton's point being that,

"Well, a lot of the reason

you're okay is

because you don't pay

for labor where you are,

and you've got slaves

working your farms."

-Hamilton insisted,

as a matter of national honor

and to establish America's,

you know, future greatness,

that it was imperative

to pay off that debt in full.

- If you assume the debts,

the union gets

A new line of credit,

a financial diuretic

How do you not get it?

If we're aggressive

and competitive

The union gets a boost

You'd rather give it

a sedative?

-The fights between

Jefferson and Hamilton

that they had across

this table are --

are the fights

we're still having.

-Yes.

Well, I can't imagine

what dinner around that table

would have been like that night.

Washington, I'm sure,

is sitting there stone-faced,

trying to placate everyone

at the same time.

- Hey, turn around, bend over

I'll show you

where my shoe fits

-Alexander!

- I'm...

- Madison, Jefferson,

take a walk

Hamilton, take a walk

-Hip-hop is the way

for young men

and young people to still --

-Test each other.

-Yeah, to test each other

without anyone being hurt,

and everyone, you know,

can go back home

at the end of the day.

-But the stakes are not,

"Who's the best rapper?"

The stakes are,

"What direction are we going

to go in as a country?"

Every rap battle sets

the historical precedent.

That is the highest stakes

you could have for a rap battle,

higher, even, than "8 Mile."

Something that really

sort of spoke to me

when I was, you know,

reading this story

and beginning to research

and write it

is that moment

when we trade away the capital

in exchange for the debt plan.

-Right, right.

-And we call it "The Room

Where it Happens."

-Right.

-And what have you learned

being in that room?

I mean, we're in that room.

We're in the room

where the sausage gets made.

-I'm in most of the rooms.

There's no doubt about it.

And you know,

what you learn is

that everybody who comes

to a room to make decisions,

they're bringing the constraints

that have been placed on them

by their constituencies.

-Yeah.

-And the only way

anything gets done

is if people recognize the truth

of the person across the table.

- Two Virginians

and an immigrant

Walk into a room

- Diametrically opposed, foes

-You have to be able

to get in their heads

and see through their eyes

in order for things to happen.

-"Here's the problem,

Mr. President."

"Okay.

How are we gonna solve it?"

I mean, it's pretty simple.

- They emerge

with a compromise

Having opened doors

that were previously closed

- Bros

-Check this out.

This is the room

where it happened.

Hamilton says, "You got to

help me pass my financial plan."

Jefferson goes, "Oh, well, okay.

Come over for dinner.

I'll invite Madison.

We'll work it out."

And now it's

an office building,

and this is where the smokers

hang out from this building.

The room where it happened

- The room where it happened

- No one else was in the room

where it happened

The room where it happened,

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