answersLogoWhite

0

Jefferson believed that the necessary and proper clause only allowed the government to those things because it was absolutely necessary. But Hamilton believed that the bank was in needed of the bank to help collect tax money, make loans to private citizens, and to issue paper money. And the problem was that the people didn't trust in paper money because they believed that it would not hold its value. ">Jefferson believed that the necessary and proper clause only allowed the government to those things because it was absolutely necessary. But Hamilton believed that the bank was in needed of the bank to help collect tax money, make loans to private citizens, and to issue paper money. And the problem was that the people didn't trust in paper money because they believed that it would not hold its value.

Hamilton also wanted to allow some form of partial private ownership in the National Bank which Jefferson was opposed to on the grounds that it could enrich a private institution or institutions at the expense of the public. Jefferson also was concerned about speculation from individuals who were privy to information that was not available to the general public such as the fact that the federal government was offering a premium for the state debt owned by individuals in the state. For example: If a rural farmer owned $10.00 in state debt and the federal government was willing to buy back the $10.00 debt at a premium of $15.00 - speculators would offer to purchase the farmers debt for say $12.00 and sell it back to the feds for the full $15.00 value thus the farmer would be cheated out of the profit from his investment. These numbers are for demonstration only as I have no idea what the actual values were at the time.

Hamilton won the argument - Jefferson, as was his method, made the best of it by working Behind the Scenes to limit the power of the Bank (and the federal government for that matter) so as not to infringe on the rights of the individual states.

User Avatar

Wiki User

11y ago

What else can I help you with?