PoliticalChic
Diamond Member
1791 A bill to charter the Bank of the United States for twenty years was passed by the Senate. Disagreement about its constitutionality was to create the first political parties. The farmers of the South were debtors by nature, while business interests of the North were encouraged by the fiscal policies of a bank. Many questioned whether the Constitution allowed a central bank (Madison- who also wrote in the Federalist, 44, wherever the end is required, the means are authorized), while Hamilton turned to article I, section 8 which gives the Congress the right to pass any legislation deemed necessary and proper to exercise listed powers.
On February 8, the House passed the bank bill, 39 to 20. Washingtons Attorney-General, Edmond Randolph of Virginia, felt that the Bank was unconstitutional, and Jefferson, feeling that only the state could charter a bank, actually suggested any person acting for a central bank shall be adjudged guilty of high treason and suffer death accordingly by state courts. Hamilton won, and Washington signed the bill on February 25th, and the Bank allowed the government to implement four powers cited in the Constitution: collect taxes, borrow money, regulate trade among the states and support fleets and armies.
President Jeffersons opposition to the Second Bank of the United States was a determining factor in the War of 1812, as Nathan Rothschild had insisted on it. By 1792, Hamiltons supporters (banking and merchant interests in New England and along the seaboard, mainly Congregationalists and Episcopalians) became known as Federalists. Jefferson, Madison and their supporters (Southern planters and farmers, often Baptists and Methodists), many states-rightists, became Democratic-Republicans. The former emphasized the executive branch, the latter the legislative. Hamilton was pro-British, Jefferson opposed the British.
On February 8, the House passed the bank bill, 39 to 20. Washingtons Attorney-General, Edmond Randolph of Virginia, felt that the Bank was unconstitutional, and Jefferson, feeling that only the state could charter a bank, actually suggested any person acting for a central bank shall be adjudged guilty of high treason and suffer death accordingly by state courts. Hamilton won, and Washington signed the bill on February 25th, and the Bank allowed the government to implement four powers cited in the Constitution: collect taxes, borrow money, regulate trade among the states and support fleets and armies.
President Jeffersons opposition to the Second Bank of the United States was a determining factor in the War of 1812, as Nathan Rothschild had insisted on it. By 1792, Hamiltons supporters (banking and merchant interests in New England and along the seaboard, mainly Congregationalists and Episcopalians) became known as Federalists. Jefferson, Madison and their supporters (Southern planters and farmers, often Baptists and Methodists), many states-rightists, became Democratic-Republicans. The former emphasized the executive branch, the latter the legislative. Hamilton was pro-British, Jefferson opposed the British.
