How did alexander hamilton justify the creation of the national bank of america

After months of battling and compromises, the US Constitution was finally sent to Congress by the Constitutional Convention on September 17, 1787. Through the ratification process and the first decade under the new government, America was embroiled in heated arguments over exactly how the government would work and what powers it could really exercise. Political parties soon developed as groups argued about the direction of the country. Alexander Hamilton became a leading voice of the Federalists who believed that the federal government needed to be strong. On the other side, Thomas Jefferson, a Republican, argued that too much power in the hands of the federal government would lead to tyranny.

The necessary and proper clause, part of Article I of the Constitution, allowed for Congress to make laws and provisions that were not part of the enumerated powers. Hamilton and Jefferson debated many times over what was meant by “necessary and proper.” Hamilton took a more liberal reading of the clause and said that Congress should do anything it felt was necessary to carry out national responsibilities. Jefferson held that the clause meant that Congress should only take actions that were absolutely necessary, and no more. In 1791, Hamilton proposed that the United States charter a national bank in order to take care of Revolutionary War debt, create a single national currency, and stimulate the economy. Jefferson argued that the creation of a national bank was not a power granted under the enumerated powers, nor was it necessary and proper. Both gentlemen presented their arguments to Washington, and ultimately Washington agreed with Hamilton.

Through loose construction of the constitution therefor, if congress thinks a national bank is necessary and proper, it had the power to pass a law creating a national bank.