Why did Alexander Hamilton propose paying the entire national debt at its face value?
Not helpfull dude
Alexander Hamilton proposed paying the entire national debt at its face value for several reasons:
1. Restore Confidence: One of Hamilton's main goals was to restore confidence in the newly formed United States of America, both domestically and internationally. By paying back the debt in full, the government would demonstrate its commitment to honoring its financial obligations, boosting confidence among creditors and potential investors.
2. Establish Creditworthiness: Hamilton recognized the importance of establishing the creditworthiness of the United States. By paying back the debt in full, the nation would prove itself to be reliable and creditworthy, allowing it to borrow money in the future at more favorable interest rates.
3. Consolidate Power: Hamilton wanted to centralize power and authority in the federal government. By assuming the debts of individual states, the federal government would gain control over the economic and financial affairs of the nation. This consolidation of power was not only seen as a means of creating a more unified country but also as a way to exert greater control over economic policies.
4. Stimulate Economic Growth: Hamilton believed that paying back the debt would stimulate economic growth. By paying off creditors promptly and in full, it would encourage more people to invest in government securities, which would provide the government with additional funds to finance public projects and stimulate economic development.
To get a more comprehensive understanding of Hamilton's proposal, one can consult historical documents, such as Hamilton's reports to Congress or other writings where he discusses his reasons. Additionally, examining secondary sources, such as biographies and scholarly articles, can offer insights into the historical context and the broader implications of Hamilton's proposal.
This site will explain that.
http://www.apnotes.net/ch10.html