Alexander Hamilton: Financial Plan
After the Founding Fathers ratified the Constitution, they realized that they had to deal with sixty-three million dollars debt that they owed to those who took part in the American Revolution. In order to pay back this debt Alexander Hamilton created a financial program. However, some Republicans such as Thomas Jefferson and James Madison thought that his plan was unconstitutional because one would need to use the necessary and proper clause which most people feared because it gave the government too much power. This, however, is not so Alexander Hamilton’s financial plan however was mostly constitutional because it allowed it to use the powers as well as responsibilities congress already had such as print its own form of currency, issue taxes, and ultimately pay off debts. Hamilton’s financial plan can be broken down to four parts the taxation, national bank, Hamilton’s reports, and the assumption plan all four were within his rights to do so.
One of the four parts of Hamilton’s economic plan was taxation. He placed a tax on Distilled Spirits, or otherwise known as whiskey, because not many people produced it and sold it. This part of his plan that was completely constitutional. Since it is one of the enumerated powers as seen in the Constitution (I, 8, 1) that Congress is allowed to collect and levy taxes to pay off a debt. Thus Hamilton’s taxation on distilled spirits was constitutional. The second part of the financial plan was the creation of the national bank. Some things the national bank did were that it established a national currency and establish credit in the country and overseas. The national bank was constitutional because it could have been done through the elastic clause, or the necessary and proper clause (I, 8, 18). This clause could have been used because it allowed Congress coin money, pay off debts made in the Revolution, and regulate commerce. Also, all three are enumerated powers.
Another part of the economic program was the reports
One of the four parts of Hamilton’s economic plan was taxation. He placed a tax on Distilled Spirits, or otherwise known as whiskey, because not many people produced it and sold it. This part of his plan that was completely constitutional. Since it is one of the enumerated powers as seen in the Constitution (I, 8, 1) that Congress is allowed to collect and levy taxes to pay off a debt. Thus Hamilton’s taxation on distilled spirits was constitutional. The second part of the financial plan was the creation of the national bank. Some things the national bank did were that it established a national currency and establish credit in the country and overseas. The national bank was constitutional because it could have been done through the elastic clause, or the necessary and proper clause (I, 8, 18). This clause could have been used because it allowed Congress coin money, pay off debts made in the Revolution, and regulate commerce. Also, all three are enumerated powers.
Another part of the economic program was the reports