The first major political issue faced by the US governent after the ratification of the constitution concered the proposal of Alexander Hamiliton to establish

First Report on the Public Credit

Alexander Hamilton's First Report on the Public Credit, January 9, 1790

The First Report on the Public Credit was one of four major reports on fiscal and economic policy submitted by American Founding Father and first United States Treasury Secretary Alexander Hamilton on the request of Congress.[1] The report analyzed the financial standing of the United States of America and made recommendations to reorganize the national debt and to establish the public credit.[2] Commissioned by the House of Representatives on September 21, 1789, the Report was presented on January 9, 1790,[3] at the second session of the First US Congress.[4] The 40,000 word document [5] called for full federal payment at face value to holders of government securities ("Redemption") [3] and the national government to assume funding of all state debt ("Assumption") [3] The political stalemate[6] in Congress that ensued led to the Compromise of 1790, locating the permanent US capital on the Potomac River ("Residency").

The Federalists' success in winning approval for Hamilton's reforms led to the emergence of an opposition party - the Democratic-Republicans [7] and set the stage for political struggles that would persist for decades in American politics.[8]