Question

How did Alexander Hamilton plan to pay off the national debt? What problems could arise from this, especially in paying back loans with grants of land?

a. Hamilton proposed using government revenue to pay off debts
b. Issues could arise due to disputes over land ownership and value
c. Economic challenges might occur if land values fluctuate
d. All of the above

Answer 1

Alexander Hamilton planned to pay off the national debt by using government revenue and issuing new securities to certificate holders. Problems with paying back loans with grants of land could arise due to disputes over ownership and value, as well as economic challenges from fluctuating land values.

Step-by-step explanation:

Alexander Hamilton planned to pay off the national debt by using government revenue and issuing new securities to certificate holders on which the government would make annual interest payments. This approach was based on the British model, where the wealthiest citizens held most of the securities and continued to invest in the government when annual interest payments were made. There could be problems with paying back loans with grants of land. Disputes over land ownership and value could arise, leading to conflicts and legal challenges. Economic challenges might also occur if land values fluctuate, affecting the value of the grants of land as a means of repayment.

All of the above options are correct:

1. Hamilton proposed using government revenue to pay off debts
2. Issues could arise due to disputes over land ownership and value
3. Economic challenges might occur if land values fluctuate