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Article 1 Section 8 Of The Constitution Pros And Cons

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March 15th, 2023 Nicholas Sparacino 8A Social Studies Teacher of North Point Middle School 2275 W Meyer Rd, Wentzville, MO 63385 Dear Mr. Sparacino, Is our country's “most valuable” resource ever meant to exist? Are the banks and money we have now considered…..unconstitutional? After the USA became independent in 1776, we were put in serious national debt and our founding father Alexander Hamilton wanted to create a national bank to support our economy. Thomas Jefferson believed that creating a national bank gave too much power to the federal government and was extremely unconstitutional, while Alexander Hamilton stated the “Elastic Clause” and classifying the bank as necessary and proper for the people of our nation. In the Battle of the …show more content…

Therefore, making the bank unconstitutional for not following the elastic clause and making Jefferson’s argument about the national bank correct.Hamilton states that an issue that could happen without the bank would be the ability for the government to function and the authority of the government. He argues that all of the powers secured in a nation’s government are in the power of the nation’s authority. As well as applying all actions that are necessary and appropriate that are not specifically stated in the Constitution (Kapstein).Even though those are issues that could happen, that doesn't necessarily mean that those events would occur without a bank. Also, the Constitution states that powers not granted to the federal government are granted to the states and people. Meaning that if a national bank was decided by just the nation’s authority, it would be unconstitutional due to not leaving the non-constitutional actions up to the people.Using the implied powers (political powers that are given to a nation's government that aren't stated in the Constitution), Hamilton argued that the Constitution explicitly states that powers that aren't stated in Article 1, are granted to Congress and they can decide actions that are necessary and proper. Therefore, making the national banks absolutely imperative and growing the nation through taxes and loans (Kapstein). While the Constitution’s elastic clause does explicitly give those powers to congress specifically, this doesn't mean that creating loans and taxes are absolutely needed for our country, rather a convenience or quick fix for our nation’s issues. With the

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During the debate between Hamilton and Jefferson regarding the Bank of the United States, both used the elastic clause (Article 1, Section 8, clause 18) and the tenth amendment in the preamble as justification to their positions. When Alexander Hamilton presented his Report on a National Bank to Congress, he had specific proposals in his plan for his bank, which is what caused a great rift between Hamilton and Jefferson. The main proposals Hamilton had that was refuted by Jefferson were based along the lines of the worth of the bank's stock, the shares sold at a pricing of $400 per share, how the bank would be run by its elected board, and its ability to establish offices in other cities. The reasoning as to why Jefferson was so opposed to

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Thomas Jefferson and the other politicians who agreed with his views (Democratic-Republicans), were inclined to believe that the American Revolution was an act of pure rebellion, only unifying with the other colonies for a common goal of independence. Such a view, if strictly followed, would mean there would have been no reason for the colonies to stay unified, and this scenario would have surely been the end of an established powerful nation. Alexander Hamilton and the Federalists on the other hand, tended toward the view of advancing the current American experiment with a few sacrifices that would cause great turmoil amongst the states but ultimately unify them. One of these great sacrifices would be to establish a national bank in which state debt would become a total sum known as a national debt. His view was that unless each state felt indebted and/or dependent toward a federal government, that the union would eventually fall apart, and what made the United States powerful and capable of claiming their own independence would fade away.

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This national bank, created in 1791 by Alexander Hamilton, was to handle the war debt accumulated from the American Revolution. Jackson opposed this institution because he believed that it gave the federal government too much control. He also believed that this institution catered to the rich. Jackson was representative of the average American, and he wanted to give power to the people, not just the aristocratic population. Henry Clay proposed the rechartering of the Bank of the United States in 1832, and naturally Andrew Jackson vetoed the bill.

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The inelastic currency was creating conflicts in the negotiations and trades between rural and urbans. During George Washington presidential term, Alexander Hamilton Treasury Secretary at that time, established the first Central Bank in 1791 which lasted for 20 years. Thomas Jefferson and their followers felt doubt and uncomfortable to leave too much power for few hands. Jefferson pointed that the creation of a bank is unconstitutional (The American Dream Film-Full Length). Hamilton initiated the idea of a national bank with his solid reasons; Finance revolution wars, create more uniform currency and the availability to lend and credit nationwide.

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And, if the National Bank was ever to go into debt after paying off the U.S’s debt then taxes/prices would go up. Which they were legally able to do under the Constitution. As mentioned above rules for this bank were not set and are strict so things like this were legally able to take place. Jefferson angrily said “The power to create corporations had to be explicitly authorized and was not something that could be created by “implication” from the text of the Constitution (Bill of Rights Institute).” Financial corruption as Jefferson implied would only not benefit the people in the U.S.

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The creation of the first bank in the United States prompted a political debate which started in 1791, and went on in the following years. Hamilton’s plan foresaw a bank provided with special powers and privileges, which gave birth to a wide opposition. Although Hamilton 's idea continues to exist in today’s economic environment, at that time his proposal was met with widespread resistance from individuals such as James Madison and Thomas Jefferson, who considered the creation of a federal bank as unconstitutional. Following to a broad interpretation of the Constitution, Hamilton argued that in order to have an effective bank, Congress should be provided with all the powers required. Jefferson disagreed with Hamilton, and claimed that the establishment of such a bank was not consistent with the powers that the Constitution granted to Congress.

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Jefferson believed the Constitution did not give the national government the power to establish a National Bank. Another argument for Jefferson was if the national government did establish a National Bank it would leave the power in the hands of a few people

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He successfully argued for the assumption of state debts by the federal government and the establishment of the first national bank – a private, but partially government-owned institution. He firmly established the principles of financial trading. Due to his efforts, the creditworthiness of the United States was restored. Hamilton’s accomplishments as Treasury Secretary were not achieved without a struggle. His congressional opponents tried to exhaust him by demanding detailed reports on the workings of the treasury department with incredibly short delivery dates.

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Hamilton interpreted it loosely while Jefferson was strict. This led to an argument about whether the creation of a national bank was constitutional; Hamilton stated it was while Jefferson claimed it wasn’t. Another issue that they clashed

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Hamilton 's monetary course of action for the nation included working up a national bank like that in England to keep up open credit; cementing the states ' commitments under the focal government; and initiating guarded tolls and government enrichments to empower American makes. These measures fortified the administration 's vitality to the hindrance of the states. Jefferson and his political accomplices limited these progressions. Francophile Jefferson expected that the Bank of the United States addressed an inordinate measure of English effect, and he battled that the Constitution did not give Congress the capacity to set up a bank. He didn 't assume that propelling produces was as basic as supporting the authoritatively settled agrarian base.

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Hamilton wanted to create public credit with a treasury system, a national bank, a mint, and increase manufacturing which would help unify the country. On the other hand, there was Jefferson, who opposed a strong central government. He argued that the “wealthy would gain at the expense of ordinary Americans and that Hamilton’s political economy would corrupt the morality of citizens and undermine the social conditions essential to republican government”(Powerpoint). The country would opt for an approach closer to Hamilton’s views. One of the first acts was the National Banking Act.

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The need for a national bank was very much so necessary. Hamilton also convinced president Washington to sign the bank bill by his lengthy report that stated: “This criterion is the end, to which the measure relates as a mean. If the end be clearly comprehended withan any specified powers, collecting taxes and regulating the currency, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the constitution, it may safely be deemed to come with the compass of national authority.”

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Hamilton came up with the idea of a national bank he believed this would allow the government to deposit money that was raised from taxes into the bank. Hamilton proposed that the United States should create a national bank in order to take care of Revolutionary War debt, create a single national currency, and stimulate the economy. They also believed this to be useful for providing loans for government and businesses. Jefferson interpretation the constitution in a way that meant congress couldn't set up a national bank or it would be unconstitutional, However Hamilton pointed out that the necessary and proper clause, part of Article I of the Constitution, allowed for

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The main point of Thomas Jefferson’s argument is that the power of the United States to create a national bank is not stated in the Constitution. Because the power is not specifically enumerated, it is unconstitutional. The main point of Alexander Hamilton’s argument is that there are many things that the United States may not do, but creating a national bank is not specifically stated, making it constitutional. Hamilton is building his argument on the tenth section of the first article of the Constitution.

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Jefferson and the Democratic-Republicans were strict constructionists who believed that if the Constitution didn’t allow something, it was forbidden. Hamilton and the Federalists were loose constructionists who believed that if the Constitution didn’t forbid it, it was allowed. He explained his loose constructionist views in “Hamilton’s Opinion as to the Constitutionality of the Bank of the United States,” saying, “If the end is clearly found within any of the specific powers, and if the law has an obvious relation to the end, and it is not forbidden by any particular provision of the Constitution, it may safely be deemed to come within the compass of the national authority.” The National Bank held money for the nation, funded the government, and put private and public money together for a capital pool. Hamilton liked the National Bank because it loaned money to

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