A power was wanted somewhere to control these State banks,
and to give a redeemable and uniform currency to the country.
The State banks had proved destructive to the public interest; with no
power to restrain their issues except that imposed by their charters
and the honesty of their officers--a frail security for the public, as
experience had attested. The example of Washington was pleaded by the
advocates of the bank. At the very outset it had been opposed for want
of constitutionality. Washington had doubted it, and submitted the
question to two of his Cabinet--Mr. Jefferson and Mr. Hamilton. They
were divided in opinion--Mr. Jefferson opposing, and Mr. Hamilton
sustaining the constitutionality of the measure. The opinion and
argument of Hamilton prevailed, and the act creating a bank received
the Executive approval.
It answered admirably the object of its creation, and the Republican
party (then in embryo) acquiesced. Indeed, at this time, there could
scarcely be said to be a party separate from the Government. Mr.
Hamilton and Mr. Jefferson were the leaders of the parties which
divided the people upon the adoption of the Constitution, and these
parties, though at this time inchoate, were concreting about these two
wonderful men.
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