USA HISTORY

Detailed explanation-1: -Establishment of the Bank of the United States was part of a three-part expansion of federal fiscal and monetary power, along with a federal mint and excise taxes, championed by Alexander Hamilton, first Secretary of the Treasury.

Detailed explanation-2: -One of the most important of Alexander Hamilton’s many contributions to the emerging American economy was his successful advocacy for the creation of a national bank. But the Bank of the United States, like many of Hamilton’s other projects, would generate controversy.

Detailed explanation-3: -The Constitution did not give the national government the power to establish a bank. The argument between Hamilton and Jefferson over the bank finally boiled down to one question: was it constitutional? Jefferson and his supporters lost that argument in Congress, which passed the Bank Bill in February 1791.

Detailed explanation-4: -In his famous Report on a National Bank, presented to the House of Representatives in mid-December 1790, Secretary of the Treasury Hamilton explained in great detail how his proposed system would operate.

Detailed explanation-5: -I wrote financial systems into existence. As Secretary of the Treasury, Hamilton was in large part responsible for setting up our modern banking system, establishing the federal budget process, and establishing the Bank of the United States.