The first symptom of the trouble appeared when Madison studied Hamilton's proposal for the funding of the domestic debt. On the one hand, Hamilton's recommendation looked straightforward: All citizens who owned government securities should be reimbursed at par-that is, the full value of the government's original promise. But many original holders of the securities, mainly veterans of the American Revolution who had received them as pay for their service in the war, had then sold them at a fraction of their original value to speculators. What's more, the release of Hamilton's plan produced...
The tensions began when James Madison scrutinized Alexander Hamilton's proposal regarding the repayment of domestic debt. Hamilton suggested that all holders of government securities be compensated at their full value, which sounded fair. However, many original holders, especially Revolutionary War veterans, had sold their securities for much less to speculators, creating a dilemma regarding fairness and economic integrity.
This situation highlighted the intricate financial dynamics post-war and the struggle between different groups within society. The release of Hamilton's plan sparked significant debate, revealing the deeper conflicts among the founding fathers regarding financial responsibility and the distribution of wealth in the new nation.
