Conclusion Seigniorage and Sequestration Hamilton's conclusion included two philosophical questions, both of which had far reaching implications on the idea of public credit. In essence, did a government have the right to tax its own funds, and did that government have a right to sequester or confiscate the funds of a foreign creditor in the event of a disagreement or war with that individual's nation? Hamilton believed when a government entered into a contract with a creditor , it entered into that contract with an individual in the state of nature rather than one as part of its or another's society. Firstly, to take a percentage of revenue due to a creditor from within its own borders amounts to a broken promise  which upends the faith upon which credit derives its value. If a reasonable creditor cannot expect a contract with the government to be upheld, others will not venture into precarious future investments, and the availability of funds will shrink. As availability of funds relates directly to the leverage a government can use to grow its economy, this breach of faith can have fatal consequences on the future of economic stability. Also, a tax on creditor citizens would be, at the time, wildly inestimable but definitively disproportionate. Those creditors would be charged not only the normal taxes subjected upon consumption , but those on investment as well . Therefore, those who had faith in government enough to invest in their success would unreasonably be charged the most for that success. In regards to the question of foreign creditors, some believed that a government had the right to confiscate all properties of those citizens residing within the borders of belligerent nations. And perhaps , Hamilton agreed, property obtained under the protection and  security of a belligerent nation, which is paid for through taxes to that nation , ought to be, at least politically, subject to confiscation. However, when the property in question is secured under the faith of the Government and Laws of the debtor nation, that faith should not be upended .“ What in fact is property but a fiction, without the beneficial use of it? In many cases indeed the income or annuity is the property itself: And though general usage may controul the principle, it can only be as far as the usage clearly goes. It must not be extended by analogy. ” Credit Hamilton reminded Congress that the United States was still quite young , and needed to maintain its vitality and energy through the "invigorating principle" of credit to compete with the European Powers rather than subject itself to their whims through the necessity of their manufactures. " It is impossible for a Country to contend on equal terms, or to be secure against the enterprises of other nations without being able equally with them to avail itself of [credit]. And to a young Country with moderate pecuniary Capital and not a very various industry, it is still more necessary than to Countries, more advanced in both. " " Alexander Hamilton in the Uniform of the New York Artillery" , by artist, Alonzo Chappel (1828–1887) In addition to  external benefits and potential ills, Hamilton stated that public and private credit were inevitably tied and that private credit was equally necessary in a developing country for people of all occupations to begin their endeavors. "’ Tis Wisdom in every case to cherish what is useful and guard against its abuse. ’ Twill be the truest policy in the United States to give all possible energy to Public Credit, by a firm adherence to its strictest maxims, and yet to avoid the ills of an excessive employment of it, by true œconomy and system, in, the public expenditures, by steadily cultivating peace, and by using sincere, efficient and persevering endeavors to diminish present debts, prevent the accumulation of new, and secure the discharge within a reasonable period of such as it may be matter of necessity to contract. ’T will be wise to cultivate and foster private Credit by an exemplary observance of the principles of public Credit, and to guard against the misuse of the former by a speedy and vigorous administration of Justice, and by taking away every temptation to run in debt founded on the hope of evading the Just claims of Creditors. "
Conclusion Seigniorage and Sequestration Hamilton's conclusion included two philosophical questions, both of which had far reaching implications on the idea of public credit. In essence, did a government have the right to tax its own funds, and did the government have a right to sequester or confiscate the funds of a foreign creditor in the event of a disagreement or war with that individual's nation? Hamilton believed that a government entering into a contract with a creditor enters into that contract with an individual in the state of nature , rather than as part of its or another's society. Firstly, to take a percentage of revenue due to a creditor from within its own borders amounts to a broken promise , which upends the faith upon which credit derives its value. If a reasonable creditor cannot expect a contract with the government to be upheld, others will not venture into precarious future investments, and the availability of funds will shrink. As availability of funds relates directly to the leverage a government can use to grow its economy, the breach of faith can have fatal consequences on the future of economic stability. Also, a tax on creditor citizens would then be wildly inestimable but definitively disproportionate. The creditors would be charged not only the normal taxes subjected upon consumption but also those on investment . Therefore, those who had faith in government to invest in their success would unreasonably be charged the most for that success. As to the question of foreign creditors, some believed that a government had the right to confiscate all properties of those citizens residing within the borders of belligerent nations. Perhaps , Hamilton agreed, property obtained under the protection and the security of a belligerent nation, which is paid for through taxes to that nation ought to be, at least politically, subject to confiscation. However, when the property in question is secured under the faith of the government and the laws of the debtor nation, that faith should not be upended : What in fact is property but a fiction, without the beneficial use of it? In many cases indeed the income or annuity is the property itself: And though general usage may controul the principle, it can only be as far as the usage clearly goes. It must not be extended by analogy. Credit Hamilton reminded Congress that the United States was still quite young and so needed to maintain its vitality and energy through the "invigorating principle" of credit to compete with the European powers, rather than to subject itself to their whims through the necessity of their manufactures. It is impossible for a Country to contend on equal terms, or to be secure against the enterprises of other nations without being able equally with them to avail itself of [credit]. And to a young Country with moderate pecuniary Capital and not a very various industry, it is still more necessary than to Countries, more advanced in both. " Alexander Hamilton in the Uniform of the New York Artillery" by the artist Alonzo Chappel (1828–1887) In addition to the external benefits and potential ills, Hamilton stated that public and private credit were inevitably tied and that private credit was equally necessary in a developing country for people of all occupations to begin their endeavors. ' Tis Wisdom in every case to cherish what is useful and guard against its abuse. ' Twill be the truest policy in the United States to give all possible energy to Public Credit, by a firm adherence to its strictest maxims, and yet to avoid the ills of an excessive employment of it, by true œconomy and system, in, the public expenditures, by steadily cultivating peace, and by using sincere, efficient and persevering endeavors to diminish present debts, prevent the accumulation of new, and secure the discharge within a reasonable period of such as it may be matter of necessity to contract. 'Twill be wise to cultivate and foster private Credit by an exemplary observance of the principles of public Credit, and to guard against the misuse of the former by a speedy and vigorous administration of Justice, and by taking away every temptation to run in debt founded on the hope of evading the Just claims of Creditors. 
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