What did Alexander Hamilton do with the debt of the states?

Answer 1

It is called "funding at par." That meant that Hamilton, as part of his financial program, would pay the owners of the US Bonds, the face value of the bonds they owned. Many investors had purchased these bonds at way below face value because the original owners had felt they would never receive any money from the government. Hamilton argued that even though some "speculators" would reap hug profits, it would present the US government to the world and to its citizens, as a government that would honor its financial obligations.

Answer 2

Alexander Hamilton wanted to pay the government's expenses. He was an economic conservative, with economic ideas similar to Washington's. To pay the expenses he asked Congress for a 5 percent tariff on imports. But the government also needed to establish a good credit rating with other nations. The new government was already about $56 million in debt. Hamilton proposed several steps:

1. Fund the entire Confederation-era debt at face value. This would show the good faith of the new government.

2. Assume the state's debts that had been contracted during and after the war. By paying back these loans, the government would again be showing its good credit.

3. The main pillar of Hamilton's fiscal plan was to establish a Bank of the United States. The BUS would have power over other banks, and basically control the economy of the US. Sort of like the FED operates today.

Hamilton lost out on the tariff increase as farmers feared it would cost them too much to purchase the manufactured goods they needed from Europe. He also lost out on a projectionist tariff, as the rates remained low.

Answer 3

He won the game