Alexander Hamilton proposed paying the entire national debt at its face value in order to restore the nation's economic credit so that the government could raise money in the future.
Alexander Hamilton was an American statesman and considered one of the Founding Fathers of the United States. He introduced a debt assumption ACT which was a US financial policy executed under the Funding Act of 1790. Hamilton debts assumption was a policy of assumption. Debt assumption is a special form of debt refinancing, which engages three parties the creditor, the original debtor, and a new debtor who assumes the debt obligation.
Hamilton coped with a huge national debt. In order to pay the debt he proposed that the government assume the entire debt of the federal government and the states. His aimed to retire the old depreciated obligations by borrowing new money at a lower interest rate.