Final answer:
Alexander Hamilton proposed that the government assume the state debts and issue new securities to pay off the war debts. The government would make annual interest payments on these securities and work towards paying off the entire debt.
Step-by-step explanation:
Alexander Hamilton, the Secretary of the Treasury, wanted the government to take over the war debts of the states. He proposed that the government pay off this debt by assuming the state debts and issuing new securities to certificate holders.
The government would make annual interest payments on these securities and work towards paying off the entire debt over time. This plan aimed to build loyalty to the national government and provide a base of capital for industrial projects.