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They did not believe the government was going to be able to pay its debt
Where you can purchase United States government bonds will depend on the type of bond you would like to purchase. Federal bonds are issued by the federal government, where as municipal bonds are issued by state government.
There are many websites that offer advice on how to invest money and on purchasing government bonds such as: www.treasurydirect.gov/ and www.rsaretailbonds.gov.za/
Since the states were fighting to obtain the independence of a new nation, Hamilton believed it should be the federal government's obligation to assume and pay off all the debts, at face value, the states obtained as a result of the Revolutionary War. Many Southern states had already paid their debts and some of the bonds issued by the Continental Congress and states were considered worthless to many that had lent the Congress and states money. Speculators had been buying up the bonds for pennies on the dollar in the hope that the government would redeem them at face value. Hamilton argued that even if such speculators made money, the fact that the government paid off the debts would impress European nations and convince them we would be an economically stable nation and would honor our commercial agreements.
The purchase of bonds reduces the bond buyers' bank accounts.
Many people thought he was making people rich at the expense of others.
Many people thought he was making people rich at the expense of others.
by selling government bonds to fund the debt
by selling government bonds to fund the debt
Many people thought he was making people rich at the expense of others.
1 - The government would buy up all bonds issued by the states and the federal government by 1789.2. - The government would issue new bonds to repay old debts.3. - As the economy improved, the government would pay off the new bonds.
The federal government borrows money from issuing Treasury bonds. The bonds are bought by people, businesses and other government agencies. The bonds work by people lending money to the government who in turn pays back that money plus interest.
Hamilton hoped to strengthen the American economy by paying off the national debt. He thought it was very important for America to establish good credit with foreign countries so America would be able to secure loans in the future. His plan called for the issuing of government bonds to help pay the debt. The US would pay the interest on these bonds as they matured. This gave many wealthy people who bought up the bonds direct interest in the success of the new government as success would ensure they'd make profit on their investment. Madison challenged part of this plan. While he eventually agreed it was a good idea to pay off foreign debts, he disagreed with Hamilton's idea of the federal government assuming any remaining state debts. Madison believed this gave way too much power to the federal government and penalized states such as his home state of Virginia, which had already repaid most of their debt. This marked an ideological change for Madison, who to this point had been a supporter of a strong national government.
Liberty Bonds, also known generally as war bonds.
Bonds for less than there face value.
Because the news show he watched to hear about told him it was a bad thing.
Alexander Hamilton was the Secretary of the Treasury under President Washington. It was a powerful position and it was the largest department in the new US government. In this capacity, Hamilton laid the foundations for a powerful national economy. Hamilton made decisions concerning funding the debts incurred under the Articles of Federation and preserving the US currency among other decisions such as how the government should pay the holders of government bonds.