Constitutionality of the American Bank - Essay Example

Constitutionality of the American Bank Introduction The stability and success experienced by America after the American national Bank opened its doors to the general public is a proof that the initiatives of the founders of the constitution were necessary. Interpretation of American constitution on the National Bank of America was the sole initiative of Hamilton. During this period, Hamilton met great opposition from Jefferson and Madison. The issue of constitutionality of the National Bank of America was the reason why Jefferson wrote a series of letters to Washington giving his argument about the establishment the National Bank. Many critics however argue that there was a power war between Hamilton and Jefferson. Jefferson was fighting for the rights of the general farmer on taking loans from the bank while Hamilton view was that the establishment of a National Bank would specifically benefit the business class and the government (Banning). Theory In February 1791, the bank bill was signed into law by Washington after reviewing Hamilton’s opinions on the constitutionality of the National Bank. Hamilton, who was a key contributor into signing of the Bank Bill into law, presented his opinions to president washing on public funding systems which were later incorporated into the Bank law (Hefner 52-59). According to a letter written by Jefferson to Washington, Jefferson presents his arguments on the formation of a national Bank and is opposed to the public funding system proposed by Hamilton. Before the Bank bill was signed into law by Washington, Jefferson had been among the first legislators to oppose the bill. In a letter to Washington in 1791, Jefferson tries to discuss each clause in the national Bank bill and the effects it was going to have to the economy`. In 1791, Jefferson wrote a series of letters to Washington criticizing the Bank Bill which was about to be signed into law by the president. According to Richard Hefner’s book on the history of the United States, Jefferson’s letters to Washing clearly indicate his opposition to the funding of business people by the Bank of America. He rather argues that the bank should be established so that it could lend money to the farmers who would later pay the money back with a particular interest. According to his letter to Washington in 1791, Jefferson argues that the constitution does give the give the government of united states the powers to incorporate a bank. He further argues that the powers of the bank bill were not delegated to United States by the constitution. He argues that not all powers are delegated to United States by the constitution but rather some institutions formed under the constitution should be given the powers to operate independent from the influence of the government. Jefferson, who was the head of the Department of State, was neutral during the initial stages of preparing for the formation of a National Bank. This position of being neutral did not last since the after the issue of formation of a nation bank sprout, Jefferson developed an interest to offer his opinion, which was a direct opposite of Hamilton proposals. According to his letters to Washington in 1790, Jefferson views American economy as one driven by agriculture with limited Industrialisation and manufacturing. The bank bill was created in the view that the banks would be essential for operations of United States since they would aid in the collection of revenues, dispensing debts payments, giving out loans and being used as saving point by the federal government. The constitution of the United States however, denied the government to form such an institution, which formed the basis of Jefferson’s arguments in his letters to Washington. Jefferson in his letter dated march 1790, argues that, if the government was to form a bank, it would be disobeying the constitution and that would make it worse that the government guided by the articles of confederation. Jefferson was one of the cabinet members consulted by President Washington before signing the bank bill into law. Jefferson who had a farming background had sworn to do anything to make sure that the bank bill be amended to suit the farmers or be scrapped altogether (Hefner 52-59). According to his letters, Jefferson opposed Hamilton’s idea of establishing a national bank as unconstitutional and rejected the issue of implied powers out rightly. Jefferson accused Hamilton of trying to stretch great clauses in the constitution beyond the boundaries by pushing for the formation of a National Bank. According to Jefferson, a national bank was not necessary for the growth of America’s economy rather; it was another mechanism by the government to increase its powers (Banning 312). According to his letters, Jefferson opposed Hamilton’s idea of establishing a national bank as unconstitutional and rejected the issue of implied powers out rightly. Jefferson accused Hamilton of trying to stretch great clauses in the constitution beyond the boundaries by pushing for the formation of a National Bank. According to Jefferson, a national bank was not necessary for the growth of America’s economy rather; it was another mechanism by the government to increase its powers (Banning 312). Jefferson argues that the bill reduces the whole form of governance to a single phrase, and there was the need to institute a congress with powers to oversee the activities of the senate and be allowed to do whatever was good for United States. In a letter dated may 1790, Jefferson argues that the bank bill was against the farmers will hence making the interpretation as oppressing to the farmers. In his letter Jefferson writes, “The constitution was intended to lace the executive up straightly within the enumerated powers, and those without which, as means, these powers could not be carried into effect; one of the reasons of rejection urged in the debate was that then the executive a power to erect a bank, which would render the great cities, where there are prejudices and jealousies on that subject, adverse to the reception of the Constitution.” In February 1792, Jefferson wrote letters to Washington expressing his unsatisfactory with the direction the government was heading in disobeying the constitution. By the time the bank bill was signed into law by Washington, Jefferson had earned a lot of respect from the farmers who had made the majority of America’s population (Hefner 52-59). Conclusion Jefferson was one of the politicians in United States who was opposed to the idea of senate having powers to control the country’s funds, which was in the banks bill. Jefferson’s letters to Washing were seen as the major contributors to the currents integrated National Bank of America which accommodates the needs of the general population. Works Cited Banning A . "Jefferson to Washington." The papers of Thomas Jefferson (1792): 312. Print Hefner, Richard D. Documentation of The History of United States. New York, 1990, 52-59. Print. Read More