Why did Madison argue against Hamilton's plan to repay bondholders in full?

Answer 1

Madison argued against Hamilton's plan to repay bondholders in full because he believed it favored wealthy speculators at the expense of the original bondholders, many of whom had sold their bonds at a loss. He viewed this approach as unfair and potentially corrupt, as it would reward those who had profited from the misfortunes of the nation. Additionally, Madison was concerned that such a policy would centralize power in the federal government and undermine states' rights by increasing federal financial obligations.