how did alexander hamilton receive support later on, from the south, to repay the war bonds?

Answer 1

The Kentucky and Virginia Resolutions
Alexander Hamilton was the first Secretary of the Treasury for the United States, serving under President George Washington from September 11, 1789 to January 31, 1795. Soon after attaining the office Hamilton issued a series of reports on the state of the nation's debt. In order to finance the Revolutionary War, the United States and the individual 13 colonies had borrowed money from the nations of Europe ($12 million) and from its own citizens ($42 million). The fledgling United States had a credit problem. Until they could show that they would repay the debt, it was unlikely that anyone would lend the nation a large amount of money. Hamilton proposed a plan, known today as the Hamiltonian economic program, that would repay the debt and secure the reputation of the United States. The plan called for the issuance of bonds with an interest rate of 4%. The principal of the debt would not be paid, but interest would, thus those who lent money to the country had a vested interest in its long term survival.

The most controversial aspect of Hamilton's plan involved the debt racked up by individual states. His plan called for the Federal government to assume the states' debts. James Madison and Thomas Jefferson opposed Hamilton's plan, believing that it over-extended the Federal government's powers as defined in the constitution. Hamilton's plan finally won out, but not before Madison and Jefferson formed the Democratic-Republican political party (and the proponents of Hamilton's plan formed the Federalist Party). A two-party system was born.

On July 14, 1798, the Alien and Sedition Acts was signed into law by President John Adams. This consisted of four laws that were designed to secure the nation, but also helped out the Federalist Party. The Naturalization Act required aliens to live in the country for 14 years — up from the original five years — before they could become citizens. Since many of the people who joined the Democratic-Republican Party were immigrants, this law was designed to hurt that party in favour of the Federalists as only citizens could vote. The Sedition Act also put limits on what people could say about the government. This law was designed to hamper anti-Federalist opposition. Interestingly, the law made it illegal to criticize the president, but it did not prevent criticism of the vice president. At the time, Thomas Jefferson was the vice president. He ran against John Adams, but the rules during Adams' election held that the man who received the second most votes for president became the vice president.

Some states governments disliked giving the Federal government more power than they had at the nation's founding. The method of arguing against unconstitutional legislation was unclear. For this reason, Madison and Jefferson decided to fight the law by unseating the Federalists. They were consulted on two documents that would become known as the Kentucky and Virginia Resolutions. These two documents stated essentially the same thing, that the states had the right to nullify or invalidate any Federal law the state deemed unconstitutional (this principle was known as nullification), and that the states had the right to protect the liberties of its own citizens, even against the Federal government (the principle of interposition). Jefferson wrote the set of Kentucky Resolutions, which were passed by the Kentucky legislature on November 16, 1798. An additional resolution was passed on December 3, 1799. Madison wrote the Virginia Resolution, which was passed by the Virginia legislature on December 24, 1798.

Madison and Jefferson hoped that the other states would follow with similar resolutions, but nothing came of it. Madison himself eventually joined forces with the Federalists (in establishing the nation's capitol on the Potomac River on the border of Maryland and Virginia, later to become Washington, D.C.). Even though other states did not follow Kentucky's and Virginia's example, the Resolutions had the desired effect. The people voted against the Federalists and they lost their grip on power. The Alien and Sedition Act expired when Adams' term as president ended in 1800.

Nothing was set in the constitution to eliminate nullification or interposition. As such, the Southern Confederacy would later use these resolutions as justification for secession from the Union.

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Answer 2

Well....I think you a a bit confused. Hamilton proposed monitizing our debt, and the southern states resisted because they had already paid off their debts and didn't want to bail out the states who hadn't. So--in congress they decided to place the new capitol ciyt in the south to buy the south's OK on the monitizing scheme