The Supreme Court, however, decided that the chartering of a bank was an implied power of the Constitution, under the “elastic clause,” which granted Congress the authority to “make all laws which shall be necessary and proper for carrying into execution” the work of the Federal Government.
What justified the constitutional argument to create the national bank?
Based on Great Britain's national bank, Hamilton wanted the government to develop bank branches in major cities, a uniform currency, and a place for the federal government to deposit or borrow money when needed.
Why did Congress charter a national bank?
In 1816, the federal government had chartered the Second Bank of the United States partly in an effort to control the notes issued by state banks. By demanding payment in gold or silver, the national bank could discipline over-speculative private banks.
Why did Congress and the president agree to create a national bank?
In 1791, Hamilton proposed that the United States charter a national bank in order to take care of Revolutionary War debt, create a single national currency, and stimulate the economy.
Does the Constitution allow Congress to create a national bank?
Although the power to charter a national bank is not specifically mentioned in the Constitution, it is one of the implied powers that the Necessary and Proper Clause grants Congress.
Who supported loose construction of the Constitution?
One of the most fervent proponents of a loose interpretation was Alexander Hamilton, who saw the need for a strong federal government in America's infancy, one with all of the necessary “energy” to execute the Constitution's expressed powers.