Assumption

In 1790 Alexander Hamilton, then Secretary of the Treasury, in his plans for restoring the national credit, proposed that the national government should a ume the payment of the State debts contracted in the national cause during the Revolutionary War. Ma achusetts, Connecticut and South Carolina enthusiastically favored the plan. The Middle States were divided, Pennsylvania holding off, New York and New Jersey favoring Hamilton. Virginia was the strongest opponent of the scheme, she having partially liquidated her deht by funding securities at a depreciated rate, and by selling Kentucky lands. Maryland, Georgia and New Hampshire also opposed it. The measure was near pa age by Congre , when the North Carolina delegates took their seats and cast their votes against it. Later Hamilton secured its pa age by effecting a combination with those who desired to have the Federal capital placed on the Potomac. August 4, 1790, an act pa ed by which State debts to the amount of $21,500,000 were a umed by the Federal government.