Social Science Models

Washington's Presidency: Materials

Created by Secretary of the Treasury, Alexander Hamilton, to establish economic security for the newly formed government. Hamilton believed that the Bank would assist in keeping track of debts, loans, revenue acquired by the federal government. Instead of separate state currencies, the bank would issue paper money that would have the same value throughout the country. Hamilton anticipated that the National Bank would lead citizens to depend more heavily on the federal government rather than the state institutions. James Madison argued that the Bank was unconstitutional since the Constitution did not specifically allow the creation of a bank.