The first step was that Congress pass a law obligating itself to pay interest to holders of Revolutionary War debt certificates. By so doing, Hamilton argued that people would consider the debt certificates valuable and would exchange them for goods and services, thus the debt certificates would circulate as money. Hamilton's Bank plan . . . The second part of Hamilton's recommended plan was to allow holders of debt certificates to use them to buy stock in a national bank that Congress was also to charter, The Bank of the United States. That bank would create the country's money as loans costing interest.
Interest causes debt to compound . . .
If the debt certificates were used to pay the interest, the money supply would shrink and money shortages would cause economic recession. To maintain debt-money in circulation, owners of the debt, the creditors, would add more debt to what was already owed. So debt would grow at about the rate of interest forever. In this way, these Congressmen would own the certificates when the Funding Act was passed into law and the value of the certificates appreciated to their face value. Then, they and their friends would become stockholders in the new Bank of the United States and profit from interest and growing debt.