Hamilton proposes the establishment of the National Bank and Jefferson opposed the proposal.
Hamilton's proposal: 1) Bank's 25,000 stock would be worth $10,000,000 2) 20,000 shares of the bank will be sold at $400 per share. The $400 per share will be $100 in gold and silver coin; $300 will be in government bonds 3) The remaining 5,000 shares will be bought by the US government 4) Board of Directors will be 25 people (20 chosen by the shareholder and 5 by the government). 5) Notes and bills issued by the bank will be the legal tender and redeemable in gold and silver coins. 6) Bank's charter will run for 20 years and will be subject to renewal by Congress. 7) Bank branches will be built in other cities but its main branch will be in Philadelphia.
Jefferson's opposition: 1) Special powers and privilege of the bank will hinder the growth and development of the state banks. 2) The bank will cater more to the wealthy in the cities than the farmers in the country. 3) BOD will most likely be composed of wealthy individuals who prefer to help other wealthy individuals become more rich and powerful. 4) The constitution did not give the national government to authority and power to establish a bank.
All arguments aside, the remaining issue was whether the establishment of the National bank by the Congress is constitutional or or not.
Hamilton used the Elasticity Clause to defend the creation of the Bank. President Washington decided on the side of Hamilton, thus, the National Bank was established.
