This paper examines the rise of American re-export trade amid Anglo-French conflicts in the 1790s and the debates between Hamilton and Jefferson over the nation's economic direction. It analyzes how Charles Brockden Brown's novel Arthur Mervyn reflects the clash between agrarian republicanism and a commercial credit economy, as well as the risks and opportunities brought by the credit economy. Additionally, it discusses how the novel employs fictional narratives to advance the development of the credit economy system.

The Dilemma of Agrarian Republicanism and the Irony in Arthur Mervyn

This section explores the contradictions between Jefferson's idealized agrarian republicanism and reality, as well as the novel's ironic critique of this ideal. Jefferson viewed yeoman farmers as the foundation of the nation, emphasizing the link between land ownership and civic virtue. However, in reality, land was concentrated in the hands of a wealthy few, while most farmers could only lease land. Through the tragedy of Old Mervyn, the novel exposes the struggles of agrarian economies under the pressure of commercial expansion. The protagonist, Arthur Mervyn, initially emulates Jefferson's agrarian ideal but gradually recognizes the inevitability of a commercial economy, adapting to and exploiting urban business opportunities. Through the stories of Mervyn, Eliza, and Fanny, the novel illustrates how individuals and families become entangled in the commercial economy, facing moral dilemmas and survival challenges. Brown critiques Jefferson's idealized agrarian vision, revealing the fragility of agriculture in the face of commercial forces and the struggles of individuals adapting to the new economic order.

The Risks and Evaluation of Hamilton’s Financial System

Through Arthur Mervyn’s experiences, this section examines financial fraud and speculation in the early republic, reflecting the risks and assessments of Hamilton’s financial system. The novel’s characters and events symbolize the era’s national debt policies and speculative financial practices, highlighting the controversies and negative consequences of liberal financial economics. Hamilton’s debt policies aimed to establish a unified financial system but triggered speculative bubbles and debt crises, drawing fierce opposition. Brown’s fictional portrayal of financial tragedy aligns with Republican concerns about financial capitalism. The characters’ attitudes toward debt reflect Brown’s complex moral and economic reflections on Hamilton’s financial vision. The novel reveals the dual nature of Hamilton’s credit-driven financial economy—both a source of economic risk and an engine for capital absorption and economic growth. The divergence between Jefferson and Hamilton’s views on speculation reflects the broader struggle between competing visions of American capitalism.

Investment Narratives and Business Ethics

This section explores the complex relationship between credit risk and investment narratives in Arthur Mervyn, revealing the financial economy’s potential impact on American prosperity and security. Through its depiction of a transatlantic economic space, the novel illustrates the divide between Federalists and Jeffersonians over national economic development. Mervyn’s storytelling functions as a means to attract investment, shape creditworthiness, and construct identity, embodying the principles of narrative economics. His evolving narrative not only alters others’ perceptions of him but also reflects the author’s revision of Hamilton’s economic policies. Mervyn’s narrative-driven behavior emphasizes credit-building through continuous disclosure and virtuous acts, persuading listeners to become investors. The novel introduces regulatory and auditing mechanisms, such as the concept of the "impartial spectator," to oversee moral judgments and property disputes. While critiquing credit risks, the novel acknowledges the necessity of a commercial credit system, aligning with Federalist concerns over trade, manufacturing, currency, and credit. Through Mervyn’s story, the novel advocates for a credit-centered business ethic to mitigate financial excesses. Brown implicitly critiques Jefferson’s political economy, arguing that his policies harmed the national economy and emphasizing the primacy of national interests. The paper contends that Hamilton’s economic framework laid the foundation for America’s rise as a global economic power, whereas Jefferson—not Hamilton—has long dominated economic perspectives in American literary criticism, a bias that requires reevaluation.