sentences:  government war time debt – had been paid with government securities at face value plus arrears of interest under the terms of Hamilton’s First Report on the Public Credit.The new securities were accepted by the Bank to purchase its stock, up to three-quarters (75%) of the value.Based on the collateral of these securities, new Bank notes were issued, producing a dramatic increase in the money supply and serving as the principal circulating medium – the “legal tender” – for the country.