Question

explain how conflicting interpretations of the constitution impacted the finances and policies of the new republic.

Answer 1

The adoption of the constitution caused a series of public finance for the states of the union. The government not only planned on removing the states powers to tax import and exports but also took away their right to issue paper money, reducing their capacity to react during economic depressions or military emergencies (traditional taxation like the one imposed over properties was not feasible during tough times). Issuing paper money in state governments was a growing practice at the time due to the fact that it was seen as a supplier of a medium of exchange in a rapidly growing economy at low resource costs.