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  • 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. 
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