Hamilton’s Great Falls Industrial City Dream
The Paterson Great Falls National Historical Park in New Jersey holds the remnants of Alexander Hamilton’s bold experiment to make America industrially independent.
You can see Hamilton’s bronze statue at Overlook Park and walk through the Upper Raceway Park where pieces of the original three-tiered canal system still remain.
This 77-foot waterfall became the birthplace of American manufacturing when Hamilton founded the nation’s first planned industrial city here in the 1790s.
But his vision nearly collapsed before it even began, thanks to financial scandal and America’s first stock market crash.
Here’s how Hamilton turned a Revolutionary War scouting trip into a manufacturing revolution that would transform both Paterson and the entire country.
Hamilton Spotted Industrial Gold During Revolutionary War Picnic
On July 10, 1778, Alexander Hamilton joined George Washington and the Marquis de Lafayette for a picnic at the Great Falls of the Passaic River. They ate cow tongue, cold ham, and watered-down beer while sitting under a tree.
Hamilton kept looking at the huge 77-foot high, 260-foot wide waterfall that poured two billion gallons daily. The rushing water got him thinking about how this powerful water could run factories to make things America needed.
British Goods Strangled American Independence After the War
As Treasury Secretary, Hamilton worried about America buying too many needed goods from England. The new country still bought everything from military supplies to household items from their old enemy.
Hamilton wanted to break Britain’s hold by helping new American factories grow. Before the 1790s, the American economy relied heavily on slavery in both North and South.
Hamilton, who joined New York’s first anti-slavery group, pushed for a different path based on free labor and merit.
Hamilton’s Famous Report Laid Out His Manufacturing Blueprint
Hamilton gave his “Report on Manufactures” to Congress on December 5, 1791. This paper sparked his factory vision at the Great Falls.
The report pushed for American factories, high taxes on foreign goods, government money, and better roads and canals. Thomas Jefferson fought against it, saying factories would hurt American farming values.
Many still saw Hamilton’s report as one of the best papers on manufacturing ever written, with forward-thinking ideas about money, industry, and trade.
The S.U.M. Became America’s First Private Corporation
Hamilton started the Society for Establishing Useful Manufactures (S. U.M. ) in 1791 as a private company with state backing to grow industry.
He wrote the law for New Jersey’s first corporation and raised money to buy land around the Great Falls. The plan asked for $500,000, with investors asked to join right away.
No one would pay until they got an official Act of Incorporation. William Duer became the first Governor with Archibald Mercer as his Deputy.
New Jersey Politicians Nearly Blocked Hamilton’s Dream
New Jersey lawmakers fought hard against the S. U.M. charter because they didn’t believe in American manufacturing. Many thought the S. U.M. wanted too much power for a normal business.
After much debate, Governor William Paterson signed the charter on November 22, 1791. A later act let New Jersey invest $10,000 in the S.U. M., giving the project state backing.
Some directors wanted to name the new factory town “Hamilton,” but they picked “Paterson” to honor the governor who approved their plan.
The Designer of Washington D.C. Created the Water Power System
Hamilton hired Pierre Charles L’Enfant, who had just designed Washington D. C., to create the water system for his factory city.
L’Enfant planned a complex, multi-level water power system to send energy to factories along the route. The S.U. M.borrowed $70,000 and set aside $20,000 just for building the canal and water system.
L’Enfant designed a three-level network of canals to capture and share the waterfall’s power. Each level reused water as it flowed downhill.
America’s First Stock Market Crash Threatened the Project
On March 9, 1792, William Duer stopped paying his debts and got sued for money problems from the 1780s. By March 23, Duer went to prison for debt after his money empire fell apart.
He and his partner Alexander Macomb tried to control prices of U. S. debt and bank stocks through risky deals. When they couldn’t pay loans, prices dropped, causing a bank run and America’s first stock market crash.
People said Duer “lost” $10,000 of the Society’s money, putting the whole factory project at risk.
The Grand Plan Got Scaled Back When Money Ran Short
The S. U.M. fired L’Enfant in 1793 when he spent too much money and his plans proved too big for their shrinking funds.
His complex multi-level design cost far more than the cash-strapped Society could pay after Duer’s money disaster. The S.U. M.brought in Peter Colt, who took a more practical approach. Instead of L’Enfant’s complex system, Colt simply dammed the river and made a single water channel.
This cutback marked a big step down from Hamilton’s original grand vision.
A Simpler Waterpower System Finally Started Working
Colt finished his simpler design in 1794, bringing waterpower to Paterson’s first factory. This early system worked from 1794 to 1799, pulling water from the Passaic through a wooden dam above the falls.
The system sent water to a holding area, then through channels to a flume and waterwheel that powered the mill machines.
The first factory, called the “Bull Mill,” first used oxen for power before switching to waterpower. After turning the mill wheels, the water flowed back into the Passaic River.
Skilled Workers Brought Hamilton’s Factory to Life
Hamilton hired special workers to run the first operations, including William Hall for printing, Joseph Mort as his helper, and Thomas Marshal to run the cotton mill.
The Society started making cotton goods, printed fabrics, and other products to show American factory skills. These early factories proved that waterpower could run American manufacturing without British help.
The system powered mill operations through waterwheels and water channels.
Paterson Grew Into “Silk City” Thanks to Hamilton’s Vision
The canal system first built in 1794 eventually powered over one hundred buildings throughout Paterson. The S.U. M. helped start many new factories for the next 150 years.
Paterson got the nickname “Silk City” as it grew into the world’s biggest maker of silk goods during the 19th century.
The Great Falls water system helped create countless new things including the Colt revolver, Holland submarine, and Curtiss-Wright airplane engines.
Hamilton’s idea that waterpower could drive American business created a factory legacy that lasted for generations.
Visiting Paterson Great Falls National Historical Park
Paterson Great Falls National Historical Park is free to visit and shows where Alexander Hamilton started America’s first planned industrial city.
You can take a ranger-led “Stroll Through History” walking tour Wednesday to Friday at 2PM or weekends at 11AM and 2PM. Call ahead to make sure tours are running.
If you prefer going at your own pace, try the self-guided Mill Mile walking tour. Free parking for two hours is available at Overlook Park, located at 72 McBride Avenue Extension in Paterson.
This article was created with AI assistance and human editing.
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