Hamilton wanted a new National Bank, it would be funded by the federal government and wealthy private investors.
Hamilton wanted to tie wealthy investors to the country's welfare.
James Madison, said that the Constitution has no provisions for the National Bank so congress had no right to authorize it.
Strict interpretation: read/interpret Constitution exactly as is and limits federal governments power. Loose interpretation: read/interpret Constitution in a way that helps the country even if it's not exactly stated in constitution and favors greater federal power.
Started a debate about strict and loose interpretation of the Constitution.
Federalist won the dispute because of the Constitution, Elastic Clause gives Congress the authority to do whatever is necessary and proper to carry out it's power.
Hamilton convinced Washington and a majority in Congress to accept his views, and the federal government made the Bank of the United States.