Alexander Hamilton argued that the federal government should assume state debts
“at par” because it would unite the states, more people would have a personal stake in the success of the enterprise, and it would help gain support from the wealthier groups.
Hamilton argued that if Congress funded the entire national debt “at par” that it would help unite the states. During the Revolution all governments had taken on much debt, totaling about $21.5 million, but had no real commitment to pay them back. With the government taking on the state debts “at par” it would make the states more tightly chained together and to the central government.
Second, if the government owed creditors money they would often have a high personal stake in the success …show more content…
Some states didn't want the debts assumed, didn't like the idea of always being in debt, and they did not want to be taxed.
THE DEBT Jacobson 3
Some states, mostly those in the South, had already payed back most of their war debts.
These states, that were much more successful at paying back their debts, felt that the assumption plan showed too much favoritism to the North, where most states were struggling to pay back the debts.
Hamilton made his plan so that the United States would always be in debt. He claimed that it was more of a blessing than a burden. However, many people did not like this because they did not want to be in permanent debt.
Since the government was going to fund all of the states debts, the money ad to come from somewhere. This led Hamilton to creating multiple taxes and tariffs, such as the excise tax that placed taxes on some domestic items. The most impactful of the items being taxed was whiskey. This tax on whiskey was not popular especially in the south. This tax also caused the Whiskey Rebellion to take
“at par” because it would unite the states, more people would have a personal stake in the success of the enterprise, and it would help gain support from the wealthier groups.
Hamilton argued that if Congress funded the entire national debt “at par” that it would help unite the states. During the Revolution all governments had taken on much debt, totaling about $21.5 million, but had no real commitment to pay them back. With the government taking on the state debts “at par” it would make the states more tightly chained together and to the central government.
Second, if the government owed creditors money they would often have a high personal stake in the success …show more content…
Some states didn't want the debts assumed, didn't like the idea of always being in debt, and they did not want to be taxed.
THE DEBT Jacobson 3
Some states, mostly those in the South, had already payed back most of their war debts.
These states, that were much more successful at paying back their debts, felt that the assumption plan showed too much favoritism to the North, where most states were struggling to pay back the debts.
Hamilton made his plan so that the United States would always be in debt. He claimed that it was more of a blessing than a burden. However, many people did not like this because they did not want to be in permanent debt.
Since the government was going to fund all of the states debts, the money ad to come from somewhere. This led Hamilton to creating multiple taxes and tariffs, such as the excise tax that placed taxes on some domestic items. The most impactful of the items being taxed was whiskey. This tax on whiskey was not popular especially in the south. This tax also caused the Whiskey Rebellion to take