North's Assumption Of State Debts example essay topic
353 words
Alexander Hamilton was the man who proposed an economic plan to pay off the national debt. As the Secretary of Treasure, his job was to set in order the nations finances and to put the nation's economy on a firm footing. Hamilton said to pay off this debt thegovernment had to issue new bonds to cover the old ones. James Madison's objections to this was that thegovernment should pay the original bond holders and no tthe new holders. Hamilton also purposed that there be one bank for the whole country. Jefferson condemned the bank because he said that the north would make more money than the south and that the south would suffer.
Also Jefferson said that this was unconstitutional. TheGovernment then had a tariff or a tax on imported goods produced in Europe. But this was not enough for Hamilton so he decided to put a excise tax or a sales taxon whiskey. The whiskey rebellion was the cause of these tariffs.
Hamilton was still out to get money to pay off the National debt so he went to the wealthy people of the country and asked them for money. The assumption of state debts would give the creditors or the people who originally loaned the money, an incentive to support then ew federal government. This made the people in the south furious because some of the southern states had already paid of most of there debts. Southerners also resented this because they thought that the would be taxed to help pay the north's assumption of state debts. Most of these false sayings came from people called speculators or people that didn t know what was going oni n the government. The elastic clause gave thegovernment a right to jail or fine the speculators for about almost anything they said about the government.
When Jefferson was not the president he had a strict interpretation which mint that he took everything word for word. but once he was elected to be president he practiced a loose interpretation.
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