Answer:
Option D is correct
Explanation:
Alexander Hamilton’s assumption plan was a crucial component of his financial strategy during the early years of the United States. Let’s explore the details:
Assumption of State Debts:
Hamilton proposed that the federal government would assume (take on) the outstanding debt incurred by the states during the American Revolutionary War.
This debt included state bonds and scrip that some states had not yet repaid.
By assuming these debts, the federal government aimed to establish good public credit and strengthen the nation’s financial stability.
How It Worked:
The federal Treasury would issue bonds that wealthy individuals would purchase. This gave the wealthy a tangible stake in the success of the national government.
The revenue from a new tariff on imports would be used to pay off these new bonds.
The assumption plan shifted the burden of debt management from the states to the federal level.
