Tuesday, February 10, 2009

Argument on national bank

The argument in the government between Thomas Jefferson and Alexander Hamilton was going on for some time and its still going on. Their most recent argument is the one of the national bank issue.
Hamilton is in support of the bank and Jefferson is against it. At this point Congress is debating whether or not to create a bank or not. They are currently not sure about the legality of the situation because it may be unconstitutional to create a national bank. There are currently 2 main opinions in the matter. One of them is Hamiltonʼs idea and the other one is Jeffersonʼs. The two of them are respectively Pro-national bank and Con-national bank. Hamilton was the one who came up with the plan of a national bank in hopes of giving the national economy a new factor. He hoped that the national bank would be a bank where the government could store its money. Hamiltonʼs ideas of a national bank also lead him to the idea of a national mint, where the United States could produce its own coins. This bank would be able to lend money to various businesses and the government. Hamilton also knew the risks of the kind of power this Bank would bring so he drew up a 20-year charter, where after the time was up, only congress would be able to decide if the bank would continue to exist or not. He also asked the states to each start their own banks to ensure that this bank would not monopolize the system. Hamilton also stated that the bank was in accordance with the powers granted to the Congress though the constitution. Specifically, Article I Section 8 gave them the power, otherwise known as the elastic clause. He obviously thought that the National Bank and the mint were necessary and proper for the Nation to function efficiently. This is what some people call loose construction of the constitution. Like always, Jefferson was against Hamilton, whatever Hamilton agreed with, it was almost certain that Jefferson would disagree. Both Jefferson and Madison thought that the National Bank was a risky idea. They did not believe that the U.S. constitutionʼs elastic clause cover this kind of stuff. This is what some people call strict construction, adhering by what exactly what the constitution says, no loopholes. Jefferson also believes that necessary only should be applied in special situations and that the law only applies to the things that necessary and proper, not merely convenient.
Currently, the public opinion is leaning towards Hamiltonʼs side and Washington is more supportive of Hamilton. Hamiltonʼs idea is a great idea. There is nothing that can go wrong. It is a plan that is supposed to improve the economy and give the government a bigger leverage in the economy. It is designed to aid, not to harm. The only thing that is in its way is a minor technicality in the constitution called strict construction. It is the fundamental basis of the elastic clause to provide areas of the government in which the congress can improve or update. The national bank is a plan used to strengthen the United States of America and there is nothing serious stopping it, so donʼt stop it.

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