Bank+of+the+Untied+States+P7

__Summary of the Bank of the United States__ The Bank of the United States was proposed by Alexander Hamilton, the first Secretary of Treasury, in 1791 and originally had a twenty year charter which began on February 25, 1791. It was based from the Bank of England, causing many people to look at it with skepticism. Unlike the Bank of England, it's primary purpose was for commercial and private intrests. It was created to establish financial order, establish credit both in the country and over seas and bring one system of flat currancy to the new United States. Although it was being made to help the country, some argued that it went against the Constitution. To be sure the bank had enough funding for itself, Hamilton suggested an increased excise tax on domestically distilled liquors. Many of the Southern congressmen were afraid that the bank's burdens would fall greatly on the southern states because of this excise tax and in those states, agriculture was the main focus. It's charter expired in 1811 and was not brought back until 1816.

__Thomas Jefferson's Views on the Bank of the United States__ Thomas Jefferson was against Hamilton's proposed Bank of the United States because it came in conflict with the constitution. The constitution states that any rights not permited to the United States or prohibited to the states are reserved for the people or the individual states. The phrase "to make all laws necessary and proper for carrying into execution the enumerated powers" only enhances the point that the Bank of the United States is unconstitutional because the Bank of the United States not being necessary and merely convenient for the United States was therefore not permited to the United States and so then it was in turn reserved for the people or the individual states. Jefferson also argued that the bank would be run by rich stockholders and would help that privileged class become more powerful, so the bank would be far more help to the wealthy businessmen in the cities than farmers in the countryside. Many of the Democratic Republicans did not believe in the conservative attitude of the Bank and did not like how many of it's stocks were held by other countries, including the Bank of England.

-If the Bank of the United States is a great idea, why did the Panic of 1792 occur? -You asked what makes the bank unconstitutional, what exactly DOES make it constitutional?