1791
Experiment in Freedom · EIF-06
1790-1791 · Hamilton's Financial Program

The First Tests

In 1790 and 1791, Alexander Hamilton proposed three reports: on public credit, on a national bank, and on manufactures. Each one tested what the Constitution meant in practice. The most contested was the Bank. Jefferson said it was unconstitutional. Hamilton said it wasn't. Washington signed it into law.

Period

1790-1791

Contest

Hamilton vs Jefferson

Document

Opinion on the Constitutionality of a National Bank, Feb 23 1791

Outcome

Washington signed the Bank Bill on Feb 25 1791

The Constitution had been ratified. The new government was operating. The first real test of what the Constitution meant came not from a foreign crisis but from a domestic one: whether Congress had the power to charter a bank. The answer depended entirely on how you read three words in Article I: 'necessary and proper.'

01
1790-1791 · The Bank Debate
Hamilton and Jefferson Submitted Opposing Opinions to Washington on the Same Question.

Hamilton submitted his Report on a National Bank to Congress on December 14, 1790. The bill passed. Washington, uncertain about its constitutionality, asked his cabinet for written opinions. Jefferson submitted his opinion on February 15, 1791, arguing that the Necessary and Proper Clause authorized only laws absolutely required to execute an enumerated power, and that a bank was not necessary in that strict sense. Hamilton submitted his opinion on February 23, 1791, arguing that 'necessary' meant useful or conducive, not absolutely indispensable.

Washington signed the Bank Bill on February 25, 1791. Hamilton's reading of the Necessary and Proper Clause became the operative constitutional interpretation. The debate it opened, between strict and broad construction, continued through every subsequent generation of constitutional law.

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This criterion is the end to which the measure relates as a mean. If the end be clearly comprehended within any of the specified powers, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the constitution -- it may safely be deemed to come within the compass of the national authority.

Alexander Hamilton · Opinion on the Constitutionality of a National Bank · February 23, 1791 · Founders Online Founders Online ↗
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