jan 1, 1790 - Hamilton's plan

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1790's

Huge debt = 54 million

2 Reports of Public Credit published by Alexander Hamilton (Secretary of Treasury)

Financial plan = the federal goverment should pay off the debts at full value, it would enhance the legitimacy of the new central government -> need to raise money:

- Taxation
- System of securities: individuals (wealthy merchants and speculators) could invest in the governnment -> would make enormous profit when the time came for the US to pay off these new debts.

Congress enforsed Hamilton's plan

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