Question

Alexander Hamilton's plan for paying off both national and state debts was to:

a) Use money already in the U.S. Treasury
b) buy up old bonds and then sell new ones
c) tax the population
d) tax imports

Answer 1

B.) buy up old bonds and then sell new ones

Answer 2

B) buy up old bonds and then sell new ones


Hamilton proposed that the federal Treasury take over and pay off all the debt that states had incurred to pay for the American Revolution. The Treasury would issue bonds that rich people would buy, thereby giving the rich a tangible stake in the success of the national government.