USA HISTORY

Detailed explanation-1: -Also, he acquired a heavy debt from a friend late in life. In 1818, Jefferson endorsed a $20, 000 note for Wilson Cary Nicholas. Nicholas died in 1820, and Jefferson was forced to take on his unpaid debt.

Detailed explanation-2: -His motive was as much political as economic. Through payment by the central government of the states’ debts, he hoped to bind the men of wealth and influence, who had acquired most of the domestically held bonds, to the national government.

Detailed explanation-3: -Hamilton issued a bold proposal. The federal government should pay off all Confederation (state) debts at full value. Such action would dramatically enhance the legitimacy of the new central government. To raise money to pay off the debts, Hamilton would issue new securities bonds).

Detailed explanation-4: -The Compromise of 1790 was a compromise between Alexander Hamilton, Thomas Jefferson, and James Madison, where Hamilton won the decision for the national government to take over and pay the state debts, and Jefferson and Madison obtained the national capital, the called the District of Columbia, for the South.