first report on the public credit
written by Alexander Hamilton which declared that the federal government would assume the debts of the individual states. Hamilton believed that these debts would not only give the public confidence in the federal government, but would also emotionally bind them to the government out of a sense of loyalty and gratitude. Since some southern states already paid off their debts, they would receive no benefit from this assumption. The plan offered to put a new national capital in the south, which would eventually become Washington D.C. IT was also to assume the confederation's debts at par, which meant that interest would be included when the debt was paid. Felt that national debt would give the citizens unity and a sense of respect for the government. Third, wanted a national bank, based after band of England, which provided strong institution that printed and circulated paper money.