Hamilton was also persuaded that, since the debt had been raised to finance a national war, the federal government should assume responsibility for the states’ debts as well. Such an act of “assumption” would have extraordinarily potent political effects, for holders of state debt would transfer their loyalty to the new central government, binding the country together. It would also reinforce the federal government’s claim to future tax revenues in any controversies with the states. Peerless in crafting policies embedded with a secret political agenda, Hamilton knew how to dovetail one program
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