Question

The newly formed nation remained financially solvent through the first decade of its existence (1790s). Choose ONE of the following and explain why your choice represents the even that most significantly impacted this financial solvency. Adoption of Hamilton’s debt assumption plan Establishment of a national bank Issuance of Hamilton’s Report on Manufactures Contrast your choice against ONE of the other options, demonstrating why that option is not as significant as your choice.

Answer 1

Establishment of the national bank

- Eventually issued paper money, handled tax receipts and other government funds.

Step-by-step explanation:

The adoption of Hamilton's debt plan impacted financial solvency the most because in this plan Hamilton proposed to pay off the foreign debt and to issue new bonds to cover the old ones. He also proposed that the federal government would assume all state debt, giving creditors an incentive to support the new government and he proposed a National Bank.