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They opposed a central banking system and assumption of debt by the Federal Government because they believed this harmed states rights.
Alexander Hamilton's financial plan represented the two different views on the role of government in the early US. For example, on one end, people like Hamilton were "Federalists". Federalists believed in a strong central government. Those who opposed the plan were called "Republican" (not related to today's party). Republicans believed in a weak central government and strong state governments. Hamilton believed that by creating a central bank that assumed the debts of the states, the central bank and thus the Federal government would have great control over state finances and policy. In short, the South believed that this plan would end state sovereignty.
from historian415
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