Proposal for a National Bank
Proposal for a National Bank
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 bank for the well being of the conutry. He states that in the constitution that they can tax the people and the safest place to put the money they collect is in a bank and in which they are able to take out from. (Doc.A Art l, Sect Vlll, para.18) Also he disliked or disagreeded with the idea of only a specific party can chose the idea for a bank for them and believes that the federal government should be
supreme over state government.(Doc.B) There are many adavntages of having a national bank. Some advantages if having a bank is government can loan money to people,they can take money from the bank to use for emergancies and they can store their money as well as the advantage that they can print money.(Doc.D) Congress can chose any means not specifically prohibited by the constitution to achieve a constitution end. If the end is constitution and the means is not unconstitutional then the means is also constitutional. (Doc.F)Hamilton’s had a clear idea of how he saw the country after having a national bank and saw the future of the country in a capable stand.
In the other hand, Thomas Jefferson had acomplete view of how the country might fall into complee disaster if he allows a national bank. He states that he would accepted the idea of a bank but the problem is that he only wants to have gold and silver as coins to pay with but not other types of moniatry. He also says that it is not in the constitutiton that the federalist can create banks so he says that only the state can He also states that it shold be up to the people to decide if they want a bank or not.(Doc.A Art.l, Sec.X, para.l) As well as this he believes that it shows that they are giving all nthe power to someone if they create a bank, that it will ruin state government and that he has the support of the South and West since they are as well farmers.
He believes that the North has factories so they had to ask loans from the bank. Also Jefferson feared that the bank would give loans to the merchants in the North instead of giving it to the farmers. (Doc.C) He views that the manufactures might make banking as a business and take adavntage of th famers and lower classess(Doc. E) This does not only worried Thomas Jefferson but James Madison as well. He is really worried about that it will interfer with state bank. As well believes that if the farmers need money, they might not be able to get that help(Doc.G). Both Believe that this change in the country will hurt the greatly and they dont want to be regreating later on when there might not be a possible to change it or even fix it a little.
The reason why the chartering of the First Bank of the United States by the U.S Congress was constitutional is beacause it is just pure common sense to have a secure place to keep and hold their money. They couldn’t just keep hiding their money under there beds or even in pots since everyone did it in the same place, roberes would know exactly where it is. It is nescecary to have a bank so they ahve a place where to keep it. Also the idea that the federal government is supreme over the state government is key. I agree with the idea of creating a national bank but i believe that it should be up to the poeple if they would like to have one or not. They are they ones who will be living it day by day and with either take adavantage or miss the opprtunity of a life time.
Althought Alexander Hamilton and Thomas Jefferson disagreed in many occasions and for many reason’s, both were looking in to the well being of the country and thats what counts the most. Not only because either of them say so but because in the constitution it states “The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.” This e=means that it should be up to the state ot people to decide so what better way than to have the people decide if wheter or not they believe they should have on. Their opinon is what counts the most since it is stated in the Constitution, “Freedom of Speach”.
Subject: United States Constitution,
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 10 January 2017
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