In his 'Report on Public Credit,' Hamilton argued that the United States must pay its debts at 'par' (full value) in order to:
Show answer and explanation
Correct answer: Establish the credit of the United States for future borrowing
To borrow money in the future, the U.S. had to prove it would honor its current obligations. Paying at face value established international trust and stability in the American financial system.
Keep practicing
More Hamilton's Financial Plan questions
- Which political party formed largely in opposition to Hamilton's financial policies?
- How did the Bank of the United States help regulate the lending of smaller, state-chartered banks?
- What was the duration of the original charter for the First Bank of the United States?
- The 'Report on Manufactures' was unique among Hamilton's reports because it:
- Hamilton's financial plan was influenced most heavily by the economic system of which country?
- What was the primary motive behind Alexander Hamilton's proposal for the federal government to assume state debts incurred during the Revol…