Why did Alexander Hamilton believe that the national bank was constitutional?

Answer 1

Hamilton was the Treasury Secretary under President George Washington during the 1790s. During this period, the United States government owed over 50 million dollars in debt, plus the combined states owed another 25 million dollars. Money that had been issued just a few years past was now worthless and foreign countries did not want to provide loans. Hamilton's duty was to fix this issue. Hamilton's first step was to consolidate the entire United States debt, both the federal and state amounts, under the federal government. Many states that had paid off their debts were upset by this, as it meant they would have to pay higher taxes to the federal government to help pay off the debt. These states came on board with the plan when Hamilton promised to make the nation's capital on the Potomac River. Hamilton's second step was even more controversial, as it was the creation of a national bank that could make loans to the government, collect taxes and hold government funds. Thomas Jefferson and James Madison were both vehemently against this proposal, mainly because the Constitution did not give Congress the power to create a bank. Hamilton put forth the idea of implied powers, which meant that Congress had the power to create a bank since it was necessary, which the Constitution gave them the right to do. The bank was created for a term of 20 years, with the first year starting in 1791. Hamilton's final step was to promote American goods and industries. Congress began to levy higher tariffs against foreign companies, especially British companies as they were the main foreigners with businesses in America. Hamilton also provided government subsidies to American manufacturers, and had the government finance transportation improvements to help move goods across the country. Hamilton's plan was the norm for the nation until the early 1800s, when Jefferson's plan that focuses on small producers began to take control.

Answer 2

1]develop a natonal currency 2]have a place to keep collected tax money

the bank would ensure a sound, uniform currency

Answer 3

- Because our Nation was in Debt After the War against Great Britain .

Answer 4

Because our new nation was in debt after the war against Britain and we needed a national banking system to pay for the amount of money borrowed that was incurred.

Answer 5

because our new nation was in debt after the war against Britain

Answer 6

to pay for debt that the US was in

Answer 7

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