How did Washington pay war debts?

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2026-09-06 09:10

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George Washington addressed war debts primarily through the establishment of a strong federal financial system under the guidance of Alexander Hamilton, his Secretary of the Treasury. Hamilton proposed the federal assumption of state debts and the creation of a national bank, which facilitated the issuance of bonds to investors. This strategy helped stabilize the economy and restore public confidence in the U.S. government's financial credibility. Additionally, tariffs and taxes were implemented to generate revenue for repaying these debts.

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