Passage of the Assumption Bill (1790)

The Assumption Bill, implementing Alexander Hamilton's First Report on the Public Credit, was passed by the U.S. Congress in July 1790. This legislation allowed the federal government to assume state debts, resolving a legislative deadlock through the Compromise of 1790. The bill cleared the House on July 26, 1790, establishing the foundation for public credit.

Episodes

Background and detail

Background. Alexander Hamilton's First Report on the Public Credit recommended reorganizing the national debt. Southerners initially blocked the assumption of state debts, causing a political stalemate in Congress by June 1790. The deadlock was resolved through the Compromise of 1790, linking the assumption of state debts to the location of the permanent capital on the Potomac River.

The Compromise of 1790. The Compromise of 1790 involved Hamilton, Jefferson, and Madison. Hamilton won the decision for the national government to take over state debts, while Jefferson and Madison secured the national capital for the South. This agreement resolved the congressional deadlock, making possible the passage of the Residence Act and Funding Act in July and August 1790.

Legislative Process. Madison and his majority in the House initially blocked the assumption legislation in April 1790. Following a dinner-party bargain brokered by Jefferson, Madison withdrew his opposition. The Assumption Bill cleared the House by a vote of 34 to 28 on July 26, 1790, establishing the foundation for public credit.

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Sources

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