How did Alexander Hamilton want to deal with the issue of state debts? He ignored the state debts because they were a state problem, not a federal problem. He wanted the federal government to pay off the state debts. He told the state governments to solve their debt problems by printing more money.

Alexander Hamilton was worried that the US did not have enough credit to make it a viable trading partner with European allies.

So, he proposed that the federal government assume the State's war debts.

This was an unpopular proposal in some states that had already paid off their war debts and to some who were worried about the size of a central bank.

Hamilton, Jefferson, and Madison worked out a deal where the US capitol would be built on the Potomac in return for the US assuming the war debts of the states.

B - He wanted the federal government to pay off the state debts.