Final answer:
Conservatives were alarmed by debtor relief because it suggested government intervention, which they believed would increase the deficit and undermine personal responsibility, creating a moral hazard by potentially rewarding poor financial practices.
Step-by-step explanation:
The issue of debtor relief alarmed conservatives because it often meant government intervention in the free market, which they believed would lead to an increase in the federal deficit and undermine the principle of personal responsibility. Conservatives, including business leaders and those with a libertarian point of view, feared that the relief for debtors would set a precedent that encourages poor financial practices and bailouts for failing businesses or individuals, thereby creating moral hazard. This was especially critical in the context of large-scale economic downturns, such as the Panic of 1819 and the Great Depression, where widespread defaults and foreclosures led to calls for government intervention to alleviate the hardships of debtors. During these times, proposals such as stay laws, the abolition of debtor's prisons, and federal bailouts sparked conservative concerns about deficit spending and the perceived erosion of fiscal discipline.