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expansion of the Federal governmrnts power, at the expense of sectionalism

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American History


Written by:

Luther C


Date added:

January 26, 2013








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3 / 772


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This meant that all debt owed by the states would be taken on by the federal government and paid back to share holders. Many political figureheads especially Thomas Jefferson saw this as unfair, because most of the shareholders of the debt were wealthy American, and foreigners who bought the loans from farmers and soldiers during the revolutionary war...
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Southern states also found it unfair that some states receive a free pass on their financial obligations. But Hamilton put up the argument that it was the original holder's decision to sell the bond, and it was only fair for the current shareholders to receive payments for their bonds. Hamilton's assumption Bill passed in congress in 1791 and with great success, making the United states the most financially secure country in the world, which in turn drew on a large amount of investors...
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