1Federalist+Arguments+of+Funding+of+the+Debt

Arguments FOR **Assumption** = =
 * Ethical (social)
 * Hamilton, in his treatise __Report Relative to a Provision for the Support of the Public Credit__: //There are arguments for it which rest on the immutable principles of moral obligation.//
 * This is repaying the country—and its citizens—for the lives and money lost in the Revolutionary War. Hamilton thought assumption was a way of repaying the “price of liberty.”
 * The War had been a “common war” and thus it made sense that the debt should
 * It was is called for by the Constitution according to Hamilton: //But there is still a point in view in which it will appear perhaps even more exceptionable than in either of the former.// [Madison’s opposition to the assumption—versus annihilation—is] //repugnant to an express provision of the Constitution of the United States…‘all debts contracted and engagements entered into before the adoption of that Constitution shall be as valid against the United States’…which amounts to a constitutional ratification of the contracts respecting the debt…//
 * Unifying (political)
 * Assumption would rekindle Americans’ support, confidence, and enthusiasm for their country.
 * It would also give the creditors an interest in what now owed them their money (i.e. the United States government).
 * Economy’s survival (economic)
 * Financial unification under assumption would lead to the political unification so desperately needed by the United States.
 * Assumption is necessary in order to preserve the American economy, in which there were such great debts owed to foreign and American creditors, a steep drop in the value of lands, and an ever-growing international doubt of the States’ stability.