The national debt falls into three categories…
1790 CE
The first is the twelve million dollars owed to foreigners, mostly money borrowed from France.
There is general agreement to pay the foreign debts at full value.
The national government owes forty million dollars and state governments owe twenty-five million dollars to Americans who had sold food, horses, and supplies to the revolutionary forces.
There are also other debts that consist of promissory notes issued during the Revolutionary War to soldiers, merchants, and farmers who had accepted these payments on the premise that the new Constitution would create a government that would pay these debts eventually.
The war expenses of the individual states add up to one hundred and fourteen million dollars compared to thirty-seven million dollars by the central government.
In 1790, Congress combines the remaining state debts with the foreign and domestic debts into one national debt totaling eighty million dollars at the recommendation of first Secretary of the Treasury Alexander Hamilton.
Everyone receives face value for wartime certificates, so that the national honor will be sustained and the national credit established.