Question

Why was the new American government having money problem?

Answer 1

Answer:

The absorption of state debt would expand the national credit market that Hamilton sought to establish. The market would also aid in the establishment of America's worldwide credit rating and prevent individual states from gaining too much influence in the new country. The federal government had amassed a massive debt of $54 million, plus interest. Another $25 million was owing by the states. The Continental Congresses and the Articles of Confederation issued worthless paper money.