Secretary of the Treasury Alexander Hamilton proposed his first Report on Public Credit in 1790. He suggested the federal government redeem at face value the millions of dollars in securities issued by the Confederation. Hamilton's plan called for the government to pay off the noteholders with newly issued government securities covering both principal and accumulated unpaid interest. This would then create a permanent national debt.

Question

Why did Alexander Hamilton want to create a permanent national debt?
A.
to create a national bank
B.
to assist the French and British
C.
to help out struggling state governments
D.
to enhance the government's credit

Answer 1

D. to enhance the government's credit

Hamilton believed that by creating a permanent national debt, the federal government would establish a strong credit presence and build trust among investors and the public, which would enable the government to borrow money more easily in the future. This, in turn, would help stabilize the economy and support the growth of the new nation.

Answer 2

favored a limited national government
• opposed a national bank
• was supported primarily by farmers, artisans and skilled workers

The information in the list best describes which political party that was formed in the United States in the 1790s?
A.
Federalist
B.
Whig
C.
Democratic-Republican
D.
Populist

Answer 3

C. Democratic-Republican

The characteristics listed describe the Democratic-Republican Party, which was formed in the 1790s and favored a limited national government, opposed the establishment of a national bank, and drew support primarily from agricultural and working-class constituencies.

Answer 4

John Adams pushed for the passage of the Alien and Sedition Acts in 1798. According to historians, one consequence of the Alien and Sedition Acts was that
A.
John Adams deported thousands of immigrants.
B.
John Adams failed to win reelection.
C.
citizens staged boycotts to protest the laws.
D.
immigrants became naturalized citizens faster.

Answer 5

B. John Adams failed to win reelection.

One significant consequence of the Alien and Sedition Acts was the backlash they generated against John Adams and the Federalist Party. Many viewed these laws as an infringement on civil liberties, leading to a decline in political support for Adams, ultimately contributing to his failure to win reelection in 1800.

Answer 6

George Washington talked about foreign alliances in his farewell address. How did George Washington feel about foreign alliances?
A.
He did not want to form alliances with nations already at war.
B.
He believed alliances were the best chance at protection.
C.
He only wanted the U.S. to form alliances with European nations.
D.
He did not want to see permanent foreign alliances.

Answer 7

D. He did not want to see permanent foreign alliances.

In his farewell address, George Washington warned against the dangers of permanent foreign alliances. He believed that such alliances could entangle the nation in conflicts and lead to a loss of sovereignty, advocating instead for a more cautious and flexible approach to international relations.

Answer 8

Which precedent set by George Washington in 1789 has continued to help U.S.chief executives make informed decisions?
A.
his creation of a strong executive branch
B.
his creation of new political parties
C.
his creation of congressional committees
D.
his creation of a presidential cabinet

Answer 9

D. his creation of a presidential cabinet

George Washington set the precedent of establishing a presidential cabinet in 1789. This cabinet, composed of key advisors and department heads, has continued to serve as a resource for U.S. chief executives, helping them make informed decisions on various issues throughout American history.

Answer 10

Which was one of the economic problems that the United States was facing during the 1790s?
A.
The federal government had no means to collect taxes to pay for government services.
B.
The federal government had borrowed a substantial amount of money to build Washington, D.C. and had a large debt.
C.
The federal and state governments needed to repay money they had borrowed to pay for the Revolutionary War.
D.
The federal government had a budget surplus and did not know how to spend its extra money.

Answer 11

C. The federal and state governments needed to repay money they had borrowed to pay for the Revolutionary War.

During the 1790s, one of the significant economic problems facing the United States was the need for both the federal and state governments to address debts incurred during the Revolutionary War. This issue contributed to the development of policies proposed by figures like Alexander Hamilton to manage and consolidate the national debt.