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United States Congress Resolution for Payment of Foreign and Domestic Debt, October 11, 1787

US Congress resolution for payment of foreign and domestic debt

US Congress resolution for payment of foreign and domestic debt

New York State Archives, NYSA_A0142-77_0008
 
Document Description
United States Congress resolution on the foreign and domestic debt, October 11, 1787.
 
Questions
Why did Congress demand money from the states?
How are the states advised to raise these funds?
For what will the money be used specifically?
 
Historical Challenges
Explain how the principles of federalism influenced the actions of the federal government in its attempt to collect on arrears.
 
 

Historical Context
The American Revolution created a large national debt with millions owed to the French and Dutch governments. Individual states were also heavily in debt. Individual investors who purchased war bonds worried that they would never be able to reclaim their investment.
Each state created its own currency which was rejected by other countries in favor of gold and silver. The financial security of the new nation was threatened by a lack of hard currency backed by gold or silver. Congress took steps to repay the debt and stabilize the new American economy.
 
 
Essential Question
How did the American Revolution change the way Americans attempted to satisfy their basic needs and wants?
 
 
Check for Understanding
Students will answer the following question and support their answer with evidence from the document:
 
What economic situation did the US find itself in after the Revolutionary War and what steps did the Congress take to alleviate this problem?