Financial Stability

Hamilton believed that a National Bank would provide financial stability to the new nation. It would help manage the country’s debts and create a reliable system for handling finances.

Paying Revolutionary War Debts

One of Hamilton’s key goals was to help the federal government pay off its debts from the Revolutionary War. A National Bank would provide a means to finance these debts effectively.

Uniform Currency

Hamilton argued that the bank would create a uniform currency, making trade easier and helping to stabilize the economy. A common currency would reduce confusion and increase confidence in transactions.

Encouraging Economic Growth

Hamilton believed that a National Bank would promote economic growth by making credit available to businesses and individuals. This would encourage investment and development across the country.

Support for Federal Government

Hamilton thought that a strong National Bank would support the federal government’s ability to manage the economy. He believed it would help the government raise revenue and control the money supply, which was essential for a growing nation.

International Credibility

Establishing a National Bank would enhance the nation’s credibility with foreign investors and governments. Hamilton believed it would show that the U.S. was serious about managing its finances and debts.

Looser Interpretation of the Constitution

Hamilton had a more flexible view of the Constitution. He believed that the government could take actions not explicitly mentioned in the Constitution if they were necessary to achieve its goals, which included creating a National Bank.

Constitutionality

Jefferson argued that since the Constitution did not clearly allow Congress to create a National Bank, it would be unconstitutional. He believed that the federal government should only have the powers explicitly granted to it by the Constitution.

Fear of Centralized Power

Jefferson was concerned that a National Bank would give too much power to the federal government. He feared it could lead to a concentration of economic power that might overshadow the rights of individual states and citizens.

Support for Agrarian Interests

Jefferson believed that the United States should remain an agrarian society (focused on farming) rather than becoming too commercialized. He thought that a National Bank would favor merchants and industrialists over farmers, which he believed would be detrimental to the country's rural economy.

Potential for Corruption

Jefferson worried that a National Bank could lead to corruption and favoritism. He believed that wealthy individuals and businesses could manipulate the bank for their own gain, leading to inequality and unfair advantages.

State Sovereignty

Jefferson felt that allowing a National Bank would undermine the rights and powers of individual states. He believed that states should have the authority to manage their own finances without interference from a central banking system.