New governments often try to cancel debts

New governments often try to cancel debts -...

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New governments often try to cancel debts, but Hamilton stepped forward instead to  encourage the U.S. Government to assume the debts of all the states and to pay them  off in full along with the interest. Hamilton argued that if the new government did not pay  its creditors in full, the United States would never be seen as a stable and reliable  nation. His report said that the country must establish its trustworthiness and earn  respect if it were ever to borrow money again. To pay off the debts, Hamilton planned to  raise taxes throughout the country. Many politicians protested Hamilton's proposals, and  states that had paid off their own debts resented that they had help pay the debt of other  states. Other politicians felt only the principle should be paid, while still others cried out  against the new taxes. James Madison, who had once collaborated with Hamilton in authoring the Federalist 
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This note was uploaded on 12/26/2011 for the course HIST 101 taught by Professor Womer during the Fall '08 term at Texas State.

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New governments often try to cancel debts -...

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