The Creation Of A National Bank Essay

The Creation Of A National Bank Essay

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government securities. The creation of a national bank was deemed a necessity by Hamilton for the collection of taxes. First indirectly by the increased production of a uniformed national currency as well as rapid circulation of the currency to stimulate the economy and secondly it was a direct influence as it created a convenient medium for business to be conducted. Hamilton was met with strong opposition towards his ideals of taxation, uniform currency and a national bank with claims that such institutions were violating the rights of the states. Hamilton argued his theory of constitutional interpretation and believed that the implied powers of the government are equally as valid as expressed powers highlighted in the Constitution. “It is that which declares that the Constitution, and the laws of the United States made in pursuance of it shall be the laws on the land. The power which can create the supreme law of the land, in any case, is doubtless sovereign as to such case”(K&L 305). With the power of the federal bank came the power to borrow money. It was addressed that in sudden emergencies obtaining loans from the government would become an essential instrument. From lessons learned during the Revolutionary War Hamilton realized that a nation is always under implied threat of armed conflict. Under these threats large sums of money are wanted and needed on a sudden notice, taxation is effective in obtaining money but requires time and loans from individuals is a slow process. When there are great consequences riding on the line the ability to take advances from the bank is an indispensable asset.
The constitution was not met with resistance simply because of economic reform it was largely opposed due to the fear that the con...

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...on has been the back bone of the government that we hold dear today. The Constitution equalized the states and brought upon government and economic stability to a system where there was none. It is easy to see the influences in the articles of confederation from the American people based on the values of liberty, basic principles and rights and the structure of nature; However in the pursuit to cement individual rights we created a system that was too weak to sustain us and create a system that would prosper. While there was fear that the power of the government would be far too powerful under the constitution, it was this sovereign power that allowed us to create the economic system of unified banking, currency and the legal taxation system. Without these implementations created by the constitution the United States of America would have crumbled due to instability.

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