Which financial strategy did Hamilton propose to deal with national debts?

Hamilton's proposal focused on addressing national debts through a comprehensive financial strategy that involved the federal government assuming state debts and consolidating them into a national debt. This approach would create a stronger federal financial system by establishing the government's creditworthiness. He did advocate for managing and eventually paying off the debts, but his primary strategy was not simply to pay them off entirely in a quick fashion.

In reality, Hamilton proposed that the government would take on existing state debts and issue new bonds, which would be paid back over time. This strategy aimed to create a national debt that the federal government would manage, thereby establishing a basis for a financial relationship with the public and encouraging investment in government bonds. The emphasis was on creating a stable financial infrastructure rather than an abrupt payment or resolution of debts.

By advocating this approach, Hamilton sought to unify the states under a strong central financial system and promote fiscal responsibility while also ensuring that the nation could respond to economic challenges effectively. Such policies were fundamentally aimed at strengthening the newly formed United States and securing its financial future.