=Assumption and Funding of State Debts
=Assumption and Funding of State Debts.=–Hamilton then turned to the obligations incurred by the several states in support of the Revolution. These debts he proposed to add to the national debt. They were to be ‘assumed’ by the United States government and placed on the same secure foundation as the continental debt. This measure he defended not merely on grounds of national honor. It would, as he foresaw, give strength to the new national government by making all public creditors, men of substance in their several communities, look to the federal, rather than the state government, for the satisfaction of their claims.