Disagreement between Hamilton and Jefferson over the bank?

How to pay the national debt and the establishment of banks. Hamilton foresaw the need of lending money while Jefferson thought that was not a good idea. In the late 18th century, the early republic of the United States was facing financial problems that were dividing politicians which is happening today. There was a large national debt that had to be paid, numerous state debts as well, no national bank, and a strong dependence on other nations (Russia and China).

Much of the domestic portion of the debt was circulating in certificates issued as bonds or as pay to soldiers from the war. Hamilton thought that the money should be paid to whoever held the certificate, but Madison disagreed. His belief that only the original holders of the certificates should receive any payment for them. Hamilton's plan was directed towards the debts of the individual states. He wanted a national tax to take effect to pay off the combined state debts.

The next issue was the creation of a National Bank. Capital for this bank was to be supplied jointly by private investors and the government. The bank's notes would rest heavily on the national debt, because investors were paying for stock with government bonds. The purpose of this was to utilize the national debt to make it into an advantage. The notes issued by the bank were much in need, also, and would greatly help business and new commercial and industrial enterprise. In addition to working as a central exchange, this national bank would also handle government finances. This, again, was objected to by Madison who said that the Constitution didn't give the government power to do this. The Elastic Clause was used on Hamilton's behalf, and this part of the plan also passed.

The last part of Hamilton's plan was a protective tariff. He believed that this was an effective way to motivate the American people to use the best of their resources, reduce foreign debt, and reduce reliance on foreign nations. Hamilton's plan addressed the problems of national debt, state debts, absence of a national bank, and reliance on other nations. There were heated arguments over these points, and only one of Hamilton's proposed solutions failed to come into effect.

This is one of the many issues the United States still hasn't learned from its history and continues to make the same repetitive errors. History repeating itself.

I hope I have helped you.

Regards and thanks to Bradsnanny
Warren