"States, like individuals, who observe their engagements, are respected and trusted: while the reverse is the fate of those who pursue an opposite conduct... The proper funding of the present debt, will render it a national blessing." — Alexander Hamilton, Report on Public Credit, January 1790
Hamilton's central argument in this passage is that:
- A
Foreign creditors should be excluded from holding U.S. bonds
- B
States should repudiate their Revolutionary War obligations
- C
The federal government should immediately pay off all debts in specie
- Dcheck_circle
Funding the national debt at face value will establish public credit and strengthen the union
Explanation
Hamilton sought to fund the debt at par and assume state debts to make U.S. credit reliable, calling it a "national blessing" because it would tie creditors to the federal government. He did not advocate immediate cash payoff, repudiation, or excluding foreign holders.