Final answer:
Alexander Hamilton believed that a national bank, specifically the Bank of the United States, was essential for stabilizing the financial system, encouraging investment, and stimulating economic growth in America.
Step-by-step explanation:
Alexander Hamilton, serving as the first Secretary of the Treasury, believed that establishing a national bank would stabilize the American financial system, encourage investment, and stimulate economic growth. He introduced his vision for the Bank of the United States in his 'Report on a National Bank' in 1790, arguing that the bank would issue loans, handle government funds, regulate state banks, and issue paper money. Hamilton's plan, modeled on the British system of public credit, was designed to tie the interests of the wealthy to the economic health of the nation, thereby promoting loyalty and prosperity through a unifying financial institution.
Despite opposition from figures like James Madison and Thomas Jefferson, who feared the concentration of power and questioned the constitutionality of such a bank, Hamilton successfully convinced George Washington to sign the legislation. The proposal detailed that the Bank of the United States would be capitalized at $10 million with 20 percent government ownership, facilitate federal tax and tariff payments, and help establish a uniform currency to bring financial order and support commerce.