The Pros And Cons Of Alexander Hamilton State Debt

1203 Words5 Pages
Alexander Hamilton State Debts Despite the growing concern throughout the nation over a string of acts asserting national over state power, the Washington administration remained dominated by Federalists, led by Secretary of Treasury Alexander Hamilton. Hamilton's initiatives aroused the ire of those who maintained the politics of the Anti-federalists. Hamilton's main goals were to achieve the financial stability necessary to fight another war should one arise with the foreign threats of Britain and Spain, and to dull assertions of state power that might diminish national power. In his Report on Public Credit, submitted to Congress in January 1790. Hamilton calculated the US debt at $54 million, with individual states owing an additional $25 million. American credit was poor and continued to fall with every day the debt was left unpaid. Hamilton suggested funding the debt by selling government bonds, and further proposed that state debts be assumed by the national government. ` Hamilton advocated the selling of western land to pay off US debt to European nations in order to rebuild credit. He argued the US could continue paying interest on its domestic…show more content…
Moreover, the debates over Hamilton's proposals demonstrated how more and more, the differing ideologies developing in the United States were merely a matter of the differing desires and needs of North and South. The industrial North had rallied to Hamilton's cause, supporting the measures to improve credit and increase investment. Meanwhile, the agricultural South saw no need for the national government's usurpation of power to these ends, and was content to govern itself by local rule. This rift would steadily widen well into the nineteenth century, dominating and dividing US
Open Document