Final answer:
Alexander Hamilton proposed the federal government should pay off all state debts at full value to establish a sound financial system and strengthen the nation's credit.
Step-by-step explanation:
The subject of this question is History and the grade level is High School.
The statement is True. Alexander Hamilton proposed that the federal government should assume and pay off all state debts, including their full value. This proposal was part of Hamilton's plan to strengthen the nation's credit and establish a sound financial system.
For example, in his report on Public Credit, Hamilton argued that by paying off the state debts, the federal government would instill confidence in creditors and create a strong foundation for economic growth.
Learn more about Alexander Hamilton's proposal to pay off state debts