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Paying off the State's Debt
After the war, the states had a huge amount of debt to pay back. No one knew how to pay it off. Alexander Hamilton proposed a solution. that all the states would split the national debt between the states, so nobody had to pay drastically more than someone else because their state spent more. But many people disagreed. Especially the people in the south, who didn't think it was fair that they would have to pay more debt when they had already paid theirs off. -
Moving the Capital
Some southern politicians thought that it was unfair that the nation's capital was in New York. They believed that it gave the states nearest it too much influence over the government's decisions. Hamilton, Jefferson, and Madison met to discuss the issue. Hamilton promised he would convince congress to move the capital if they supported his plan about splitting the National debt. -
A National Bank
Hamilton wanted to create a national bank. He also thought that the states should build a mint, since the country wasn't issuing it's own money. Instead of permanently setting up a bank, he would have congress run a trial, or charter, with the bank for 20 years. After that, Congress could extend the charter if they wanted he also wanted each state to have it's own bank. But some thought that the plan gave the government too much power. But congress agreed with Hamilton, so they built a bank.
