What Was Alexander Hamilton’s Assumption Plan?
Alexander Hamilton’s assumption plan was a plan that asked for federal “assumption” of the state debts within the United States so that the economy could be stimulated and so that the nation could be strengthened as a unified front. Hamilton would later submit a request for a national bank to help circulate currency and make financial transactions simpler for the government.
In order to get the assumption plan passed through the House of Representatives, Hamilton had to make an agreement with James Madison that the nation’s capital would be moved to Philadelphia before it was placed along the Potomac River. It was agreed that the capital would remain at Philadelphia for 10 years before being moved. This agreement won Hamilton the support of the state of Virginia.