Question

According to Hamilton, why is it essential that the new Republic establish public credit?

Answer 1

Alexander Hamilton believed that it is very important for the new Republic to establish public credit. He had this belief because:

• Public credit establishment would originate new propositions for increasing the profit and improving the economic conditions of the country.
• The government was under huge debt and public credit was needed to solve this problem.
• Esblishing public credit would attract foreign investors and thereby lead to strengthening of the US dollar against other currencies.