The Pros And Cons Of Alexander Hamilton

The creation of the first national bank in the United States was of utmost importance in setting precedence for how much power the constitution actually grants the government. The debate over whether to create a national bank raised many questions over the constitution that hadn’t been tested before. It also raised questions about what the government can do when the constitution has no written clause on a certain subject. In looking at the arguments from Alexander Hamilton, James Madison, and Thomas Jefferson regarding a national bank, people can find out more about how some of the leading founders of the Constitution wanted to see the United States government run.

At this time the government was funding its debt through private banks such as the Bank of North America and the Bank of New York. Not satisfied with the structure of American banking, Hamilton reported to Congress the need to establish a National Bank in December of 1790. The Senate created a committee to study Hamilton’s proposal. On the committee were men who shared Hamilton’s ideas in fiscal matters, and that of a strong federal government. One of the members, General Schuyler, was Hamilton’s father in law. It was of no surprise that a bill arose out of the committee supporting Hamilton’s plan to incorporate a Bank of the United States.

Hamilton’s creation of the first bank in the United States continues to exist in today’s economic environment. However, at that time Hamilton’s 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. The analysis made by Gordon in his book is consistent with arguments made by to have a bank that would be effective in order to implement the powers authorized by the government as it was implied in the constitution

Two competing political philosophies have always existed throughout the United States’ relatively short history: one seeking to increase the power of the central government, and one seeking to decrease it. During the 1800s these two conflicting philosophies were acted out by the Federalist and the Democratic Republican parties, respectively. The Federalists, led by Alexander Hamilton, advocated the importance of a strong central government in leading the country forward, while the Democratic Republicans, led by Thomas Jefferson, promoted increasing the common man’s role in government. Although both political parties had good intentions for the future of the United States, the Federalist Party was much more effective at uniting the American

Before the Revolutionary War had occurred, many people were coming to the new colonies to start a new life; one of the people was Alexander Hamilton. He had come to the colonies after impressing people in the Caribbean and who then sent him to America to get a better education (“Alexander Hamilton”). Hamilton was an important figure in American history, but very few today remember who he was and what he did. Alexander Hamilton took a stand against traditional government by writing against and battling the British, fighting for the new U.S. Treasury, and arguing for the ratification of the U.S. Constitution.

Although the Jeffersonian beliefs of strict construction and the inherent efficiency of capitalism allow for short term economic gain due to the minimal inefficiencies in the market and political system, the Hamiltonian ideologies of a strong central government and bank (more here? And implied powers), especially regarding the state of the United States economy at the time, are more effective in increasing long term economic growth and the quality of life of the nation’s citizens. However, a balance must be struck between the two polar principles in order to control inflation and maintain long term economic growth, which includes eliminating tariffs but installing subsidies that target specific markets and restraining the overexpansion of credit.

Another matter the two men disagreed on was the establishment of a national bank. Hamilton wanted a national bank so he could forge a relationship between business and the federal government. Jefferson, on the other hand, thought that such a bank would encourage people to leave agriculture for guesswork and give business interests too much power in the federal government.

     Jefferson, as a Republican, believed in a society that distrusted the rich and that was run by farmer-citizens. He was a strong supported of not the upper class but, "the people". A defender of human liberty, Jefferson believed in a minimum of government and favored power at the local level. Jefferson also believed that if people were given the opportunity, they would be decent and reasonable. Jeffersons supporting party disagreed with many of the things that Hamilton and the Federalists proposed and passed as laws, including the idea of the national bank. Madison, in fact, argued on behalf of the Republicans that the federal government had no righ to establish a federal bank because it was not among the enumerated powers of Congress found in the Constitution. The Republicans also ignored the Naturalization Act, nor

Another main issue concerning the parties and their different views was centered on domestic economic policies; the creation and sustainment of the National Bank. Federalists were in favor of the National Bank because they believed the nation would thrive off of business, commerce and industry. Although the Constitution did not state within itself the creation of a national banking system, Federalists often loosely interpreted the Constitution. Democratic-Republicans, on the other hand, were strongly opposed to the creation of the National Bank, fearing that it placed too much control in the hands of the federal government. Democratic-Republicans had a strict interpretation of the Constitution, meaning that if the Constitution did not explicitly authorize something to the federal government, then it was reserved to the states. Because of Federalist’s ideals that the nation would prosper off of industry, they gained much support from bankers, merchants, manufacturers, and the elite. Their support system was based in the North, due to the North’s growing industrial economy because of their bitter climate, ports, and abundance of natural resources. However, the Democratic-Republicans gained much of the South’s vote because of their support in farmers and planters. Their belief in state’s rights, individualism, neutrality and preference of an agricultural society as opposed to an industrial society won them support in the south. With their

After the Founding Fathers ratified the Constitution, they realized that they had to deal with sixty-three million dollars debt that they owed to those who took part in the American Revolution. In order to pay back this debt Alexander Hamilton created a financial program. However, some Republicans such as Thomas Jefferson and James Madison thought that his plan was unconstitutional because one would need to use the necessary and proper clause which most people feared because it gave the government too much power. This, however, is not so Alexander Hamilton’s financial plan however was mostly constitutional because it allowed it to use the powers as well as responsibilities congress already had such as print its own form of currency, issue

One of Jefferson’s and Hamilton’s first disagreements began with the idea of a National Bank. Hamilton suggested that the government should create the Bank of the United States Jefferson protested because this was not allowed by the Constitution. Hamilton opposed the view of Jefferson and stated that the Constitution’s writers could not have predicted the need of a bank for the United States. Hamilton said that the right to create the Bank of the United States was stated in the “elastic” or the “necessary and proper” clause in which the Constitution gave the government the power to pass laws that were necessary for the welfare of the nation. “This dilemma revisits the ever lasting dispute between the “strict constructionists” (Jefferson) who believed in the strict interpretation of the Constitution by not going an inch beyond its clearly expressed provisions, and the “loose constructionists” (Hamilton) who wished to reason out all sorts of implications from what it said”. Just a few years later, under President Jefferson, the federal government of the United States

There have been many controversies since the United States declared independence in 1776. One of the many domestic issues that divided American citizens was developing the First National Bank in the late 1700s. Hamilton was in favor, while Jefferson opposed and American citizens chose their side based on what they believed what was best for the country. Hamilton proposed a Report on a National Bank in December of 1790 announcing what the National Bank would include. Hamilton’s proposal included, “The bank’s stock would be worth $10,000,000. 20,000 shares would be sold privately at $400 per share ... 5,000 shares or $2,000,000 of bank stock would be bought by the U.S. government. The bank would be run by a 25-man board of directors - 20 chosen by the shareholders and 5 by the government. The bank’s president would be elected by the board of directors. Notes and bills (money) issued by the bank would be redeemable on demand ... and would be accepted by the U.S. government for all payments due. The bank’s charter would run for 20 years and would be subject to renewal by Congress. The bank would be allowed to establish branch offices in other cities; its main branch would be in Philadelphia, the nation’s capital” (http://www.digitalhistory.uh.edu/teachers/lesson_plans/pdfs/unit3_ 4.pdf). Although the first part of the bank bill, establishing a national mint, did pass with ease, supporters and opposers debated the rest of the bill, which included the development of

The argument between Federalists and Anti-Federalists might seem long gone to American citizens, but still their philosophical foundations shape the teams, scope and size of the battlefield. These philosophies go back to two lone men, Alexander Hamilton and Thomas Jefferson. Both fought aggressively for a government based on their ideas, and both did make portions of the now-standing American government. This essay will outline the political, social and economic philosophies of both men, how their philosophies influenced the government today, and a closing opinion.

Southerners held agreed with many of Jefferson's views. The Anti-Feds and Republicans believed in strict interpretation of the constitution, peaceful foreign relations, and a reduction of the role of the federal government in the lives of average citizens. They were opposed to a strong central government and felt states should hold the power to govern. The Federalists believed that the constitution should be loosely interpreted and that America should follow the spirit of it to make laws and judgments. Federalists wanted to organize the states so a strong federal power could govern over them in order to keep enough power for the economy, war and ruling. Many were opposed to this form of government because it so closely mimicked that of Great Britain. Between these two diverse groups, their followers split the nation. The United States was geographically split North from South. The North was home of manufacturers and industry. Farming was not the North's economic base as was manufacturing. Crops would not grow year around due to freezing weather; therefore slaves were of no need during off-seasons in farming. Here, it was not economically safe or resourceful to own slaves, because of the fact that they were expensive to acquire and maintain. Since slaves were mostly used in manual labor, their use in the North was almost nonexistent. Blacks were not used in factories

In the American nation, he developed love of regulation, efficiency and organization. Hamilton strongly showed that America must possess credit for the development of government operations, trade, industry and business activities. He stressed the importance of the central government to take over the debts of the state that were unpaid in the Revolutionary period (Scott, 2008). The central government was endorsed by the American Constitution to charge and collect taxes as well as pay liabilities (Robertson, 2005). Such operations can be professionally handled by a central bank. Therefore, Hamilton was characterized by thinking creatively and critically as he observed the potential of the trade industry’s immense power (Pancake, 1974).