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Funding Act of 1790
The United States Funding Act of 1790, the full title of which is "An Act making provision for the (of the ) Debt of the United States", was passed on August 4, 1790 by the United States Congress as part of the Compromise of 1790, to address the issue of funding domestic debt. It resulted in the assumption of state debts by the federal government by the issue of federal securities.
==Background==
With the formation of the new government in 1789 and under the recently adopted US Constitution, the settlement of the Revolutionary War debt was a matter of prime importance. As a result, the first House of Representatives directed the first secretary of the treasury, Alexander Hamilton, during the presidential administration of George Washington, to draw up a plan for the support of public credit. Consequently, the First Report on the Public Credit was issued on January 9, 1790, which became the foundation for subsequent action taken by Congress for funding and paying the public debt. The Funding Act of 1790 that followed was concerned primarily with funding the domestic debt held by the states.〔(【引用サイトリンク】first=Peter )〕
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