Final answer:
Alexander Hamilton used economic benefits and a broad constitutional interpretation as arguments for creating a national bank, advocating its role in stabilizing currency and managing taxes and government revenue, which convinced Washington to legislate its establishment despite opposition.
Step-by-step explanation:
The argument Alexander Hamilton used for the creation of a national bank centered on the economic benefits and constitutional authority. Hamilton contended that the national bank would foster economic development, regulate the currency by issuing stable bank notes, and assist in managing the nation's finances by serving as a depository for government revenue, while also providing loans to the government. To counter concerns regarding the bank's constitutionality, Hamilton advocated for a broad interpretation of the Constitution's powers, particularly emphasizing the 'necessary and proper' clause to justify the creation of such an institution.
Despite the opposition led by figures such as James Madison and Thomas Jefferson who argued for a strict interpretation of the Constitution, Hamilton's robust argument convinced President George Washington to sign the legislation. Moreover, Hamilton outlined the practical functions of the bank, which included facilitating the payment of federal taxes and tariffs, issuing loans to merchants, and helping to discipline state banks by demanding they convert their notes to gold on demand.