The U.S. owed $77.1 million ($11.7 was owed to foreign countries, $40.4 million was domestic debt, and $25 was state debt). So Hamilton and Madison had plans about how to decrease the debt. Hamilton wanted all of the government securities repaid at the original value. Most veterans had received government sectaries and then sold them for a fraction of the price. Also the states had to repay all of their debts to the government. Madison saw as this being unfair so he denounced Hamilton’s plan. He stated that veterans fought for the establishment of this country and they were going to make them pay too, and second if the states had to repay all their debts and then pay taxes it wouldn’t be fair either. This then transferred into a debate about power. The states didn’t want to give to much power to the federal government, because they feared that it would be like a monarchy. The states felt that is they gave the federal government their money then they would be giving them some of their power. They also didn’t want to be swallowed up by the federal government and the taxes that they needed to pay were received badly because that’s what happened with in England, where the king and Parliament had all the power. But federal government wanted to combine the states’ debts and nationalize the