One of the most controversial institutions of our time is the Federal Reserve and its Constitutionality. Many argue that there is no place for such a powerful concentration of power anywhere in the Constitution and that our Founding Fathers would roll over in their graves if they knew of its establishment. Is this in fact true? Were the champions of liberty adverse to a source of credit, taxation, and means to economic growth that helped England rule an empire upon which 'the sun never sets'? A look will be taken a the main players in the formation of this nation and what their true feelings were on the matter.
First we will look at Jefferson. Jefferson was a champion of the Republican ideal, fearing government and big business. He was not a combatant in the revolution, so his idea of nationhood was tied to his home of Virginia and states rights. He saw the rise of the central bank as robbing the average person and was noted as stating that fiat currency was creating nothing from nothing...Thus he was not a supporter of the first Bank of the United States in the 18th century.
Next we will address my favorite, John Adams, and his opinion on the matter. John Adams was also a staunch enemy of the new central bank. He viewed this form of paper currency as a form of swindling the average citizen when not backed by gold or silver.
Another founding father, James Madison, parted ways with his long time friend Hamilton and became a virtual enemy over the idea of a central bank...falling in line with Jefferson and Adams.
Alexander Hamilton is the focal point of this paper as he had a vision of a nation and not just states. He was born in the West Indies and quickly rose in the ranks as George Washingtons aide. Although Adams hilariously called him, 'The bastard brat of a scotch peddler', Hamilton is widely considered as the father of American finance. He saw the success of the English, and the Bank of England, and their ability to conquer the globe with their innovative finance system, and wanted to model the American system as such. Hamilton, not being aligned to any state due to his birth, had a national viewpoint. As a Wall Street lawyer he often became irritated trying to explain modern finance to what he referred to as 'country bumpkins' (according to Gordon Wood). Jefferson and Adams didn't understand finance and when Hamilton was made Secretary of the Treasury the Congress ended the 'Way and Means Committee' in favor of Hamiltons knowledge on finance.
Lastly, we will address George Washington's feelings on the subject. Washington, along with Hamilton, were the only Founding Fathers to serve in the military and thus had a national, and not a statehood, view of the United States. When Jefferson offered his view of the unconstitutionality of the central bank Washington asked Hamilton to offer a rebuttal. In one of the most historic American documents Hamilton argued in favor of a central bank...and Washington agreed and signed the bank into law.
So in conclusion, we must accept now, as they did then, that there was no consensus on a central bank, and in fact they were quite divided on the subject.
By Jeffrey Brandon Lee
Thank you William H McNeill, Gordon Wood, and other historians for their research and effort on the subject.
First we will look at Jefferson. Jefferson was a champion of the Republican ideal, fearing government and big business. He was not a combatant in the revolution, so his idea of nationhood was tied to his home of Virginia and states rights. He saw the rise of the central bank as robbing the average person and was noted as stating that fiat currency was creating nothing from nothing...Thus he was not a supporter of the first Bank of the United States in the 18th century.
Next we will address my favorite, John Adams, and his opinion on the matter. John Adams was also a staunch enemy of the new central bank. He viewed this form of paper currency as a form of swindling the average citizen when not backed by gold or silver.
Another founding father, James Madison, parted ways with his long time friend Hamilton and became a virtual enemy over the idea of a central bank...falling in line with Jefferson and Adams.
Alexander Hamilton is the focal point of this paper as he had a vision of a nation and not just states. He was born in the West Indies and quickly rose in the ranks as George Washingtons aide. Although Adams hilariously called him, 'The bastard brat of a scotch peddler', Hamilton is widely considered as the father of American finance. He saw the success of the English, and the Bank of England, and their ability to conquer the globe with their innovative finance system, and wanted to model the American system as such. Hamilton, not being aligned to any state due to his birth, had a national viewpoint. As a Wall Street lawyer he often became irritated trying to explain modern finance to what he referred to as 'country bumpkins' (according to Gordon Wood). Jefferson and Adams didn't understand finance and when Hamilton was made Secretary of the Treasury the Congress ended the 'Way and Means Committee' in favor of Hamiltons knowledge on finance.
Lastly, we will address George Washington's feelings on the subject. Washington, along with Hamilton, were the only Founding Fathers to serve in the military and thus had a national, and not a statehood, view of the United States. When Jefferson offered his view of the unconstitutionality of the central bank Washington asked Hamilton to offer a rebuttal. In one of the most historic American documents Hamilton argued in favor of a central bank...and Washington agreed and signed the bank into law.
So in conclusion, we must accept now, as they did then, that there was no consensus on a central bank, and in fact they were quite divided on the subject.
By Jeffrey Brandon Lee
Thank you William H McNeill, Gordon Wood, and other historians for their research and effort on the subject.
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