section_path: Concluding the revolution/National debt
section_name: National debt
paragraph_text: National debt
  
  The national debt fell into three categories after the American Revolution. The first was the $12 million owed to foreigners, mostly money borrowed from France. There was general agreement to pay the foreign debts at full value. The national government owed $40 million and state governments owed $25 million to Americans who had sold food, horses, and supplies to the Patriot forces. There were also other debts which consisted of promissory notes issued during the war to soldiers, merchants, and farmers who accepted these payments on the premise that the new Constitution would create a government that would pay these debts eventually.
  
  The war expenses of the individual states added up to $114 million, compared to $37 million by the central government. In 1790, Congress combined the remaining state debts with the foreign and domestic debts into one national debt totaling $80 million at the recommendation of first Secretary of the Treasury Alexander Hamilton. Everyone received face value for wartime certificates, so that the national honor would be sustained and the national credit established.