Before Alexander's proposal for a National Bank, the United States had no place where to store and save their money. The country didnt have a stable economy and needed improvemt in handling the financial business of the United States. By establishing a national bank, the country woould be able to establish financial order, clarity and precedence in and of the newly formed Unted States. It will also establish credidt, both in country and overseas, for the new nation. And finally it was to resolve the issue of the flat currency, which was issued by the Continental congress immediatley prior to and during the United States Revolutionary War. Although he saw a good future with having a National Bank, Jefferson disagreed completly. The secretary of StateThomas Jefferson and Representative James Madison we opposed, in which they claimed that the bank was unconstitutional, and that it only benefited merchants and investores at the expense of the majority of the population. Like most Southern members of Congress, they believed that it would only benefit business interest in the commercial north, not the southern agricultural interest. Also they stated that the creation of a bank violated the Constitution, which specifically stated that the congress was to regulate weights and measures and issue coined money, instead of bills of credit. A strict interpretation of the constitution states that the government those powers specifically granted to it by the Constitution, and a loose interpretation of the constitution positis that the government powers that are not specifically denied to it by the constituion. Thomas Jefferson believed in a strict interpretation of the constitution while Alexander Hamilton believed in a loose interpretation of the constitution. The chartering of the First Bank of the United States by the U.S Congress was indeed constitional since it depends on how you interpreate the Constitution.
Hamilton's propostition is to create a national...
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