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He was the illegitimate son of James Hamilton (of a prominent Scottish family) and Rachel Faucett Lavien (daughter of a doctor-planter on Nevis and the estranged wife of a merchant). Orphaned and impoverished at around the age of 12, the brilliant, ambitious youth arrived in the North American colonies late in 1772 and studied (1773-74) at King's College (now Columbia).
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