Why did some southern states disagree with Hamilton’s plan to pay off the money that states owed after the Revolutionary War?

Question

Group of answer choices

It was unfair to states that did not have many debts.

It would allow speculators to make too large a profit.

It cheated bondholders who sold their bonds at low prices.

It would decrease business and trade and hurt the economy.

Answer 1

The correct answer is:

It was unfair to states that did not have many debts.

Southern states, many of which had already paid off a significant portion of their Revolutionary War debts, opposed Alexander Hamilton's plan to assume states' debts at par value because they felt it was unfair to provide financial relief to states that had not been as fiscally responsible. They believed that it would disproportionately benefit states with larger debts, primarily northern states, while penalizing those that had managed their finances more prudently.