Funding

the converting of floating debt into debt having a definite time to run before maturity, usually into interest-bearing bonds, ‘The most famous such operation in United States history was that accomplished by the Act of August 4, 1790, suggested by Hamilton, a Secretary of the Treasury. It provided for paying in full, not only the foreign and domestic debt of the United States, but also those debts which the States had incurred in the prosecution of the Revolutionary War, by means of six per cent. bonds, of which, in the case of the domestic debt, one-third were to be deferred stock, interest beginning to be paid in 1800. (See art. A umption.) 279