Hamiltons Public Credit

Question 1

What was on the public credit report of 1790-1791

Answer 1

Funding of entire domestic and foreign debt £56 mil

Federal assumption of the war debts of the states £21 mil

Question 2

What did he believe w national debt would do?

Answer 2

Cement the union as congress would have to assert a national taxing power

Question 3

What did southerners bitterly oppose?tv

Answer 3

Proposal to repayment of the domestic debt at face value as nearly all the debt was northern speculators who had brought bonds cheaply in hard times

Question 4

What did Hamilton suggest

Answer 4

Speculators entitled to consideration of the risk they took showed faith in gov

Congress adopted his proposal

Question 5

Opposition to Hamilton state that assumption scheme

Answer 5

Southern states except South Carolina had repay debts and objected to paying northern debts

Madison as Hamilton’s leading opponent Persuading Congress in April 1790 to reject the state debt proposal

Question 6

Compromise: what did madison agree?

Answer 6

Generous allowances to states that had already settled most debts

Permanent national capital would be in the south at Potomac river

Question 7

Hamilton’s second report

Answer 7

Proposal for a tax on distilled spirits to cover nations debt- passed by congress in March 1791

Question 8

2 successes of Hamilton’s report

Answer 8

Value of new government bonds rose sharply

Federal government could borrow money at home and abroad

Question 9

Political repercussions of Hamiltons report- Virginia

Answer 9

December 1790 the Virginia assembly protested against the reports due to the threat opposed to state power