Answer:
The policy of Debt Assumption was used under secretory of the state Alexander Hamilton's to repay that debts of American revolutionary war. Hamilton suggested that the federal treasury should take over and pay all the debts of the states that they have incurred due to American revolution. He proposed that the treasury should issue the bonds that rich people would purchase and it would give them a stake in running the American Revolution, and the new bonds would be paid off with the revenue that the government would generate from the tariffs on the imports.