Answer:
Hamilton proposed the idea of a national bank to help pay off state and federal debts and to encourage more manufacturing and trade. However, Jefferson was strongly opposed to this idea finding it unconstitutional but Hamilton had Washington on his side to defend him. Jefferson didn't want a national bank because he was scared that there would be a financial monopoly and that this would make state banks less powerful and less important. Jefferson found this very upsetting as he was opposed to a strong federal government and instead supported states' rights. Hamilton thought that by establishing a national bank, the country would be economically stable/strong and would increase power to the federal government. Under his plan, the bank would be able to issue currency, loan money to the federal government and businesses, and hold government money in a safe place. Jefferson argued that the constitution didn't give congress the power to create a bank and that it was unconstitutional to do so. These arguments over the creation of the bank are strongly related to the debate on the federal government's authority. Jefferson believed in strict construction which states that the constitution must be interpreted very specifically. Under this idea, the government can only do what the constitution specifically says it can do and these powers were called express powers. This means that the power of the federal government would be limited and that it wouldn't have the authority to do things such as creating a national bank. Hamilton on the other hand was in favor of loose construction, the idea that the government should have all of the powers "necessary and proper" to carry out its duties. These powers were called implied powers and were not spelled out in the constitution. However, Hamilton believed that this power was necessary for the federal government to do its job. These arguments led to the creation of the first political parties during Washington's presidency. The Federalist part was formed by supporters of Hamilton and they were in favor of strong federal government. The Democratic-Republican party was formed by supporters of Jefferson and wanted to limit the power of the federal government. The formation of these parties led to greater division in America, especially in government, as the two sides continued to disagree on how much authority the government should have.
Step-by-step explanation:
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