1. Loose and Strict Construction By Theodore O’Connor

2. The Protagonists

3. The Secretary of State Jefferson was the author of : - The Declaration of Independence The Virginia Bill of Rights Jefferson’s passion was liberty. Jefferson believed that the single greatest threat to liberty is the unbridled power of government. He believed that government needed to be constrained by Constitutional restraints. He believed in limiting the power of government.

4. The Secretary of the Treasury n With Madison and Jay Hamilton is one of the authors of the Federalist Papers. n Hamilton believed that the federal government needed to have the power to secure a civil society for all. n He believed that it was important to tie the interest of wealth to that of the central government. n He was afraid that government would have too little power.

5. The Secretary of the Treasury n With Madison and Jay Hamilton is one of the authors of the Federalist Papers. n Hamilton believed that the federal government needed to have the power to secure a civil society for all. n He believed that it was important to tie the interest of wealth to that of the central government. n He was afraid that government would have too little power.

6. The Bank of the United States The BUS was the lynchpin of Hamilton’s economic policies. It was modeled on the Bank of England. The government would own 20% and 80% would be privately owned. The Bank would hold all the debt of the federal government and would issue bonds on the debt. It would issue banknotes on its credit. It would be the sole depository of the money of the government. It would lend money for commercial ventures.

7. The Bank of the United States The BUS was the lynchpin of Hamilton’s economic policies. It was modeled on the Bank of England. The government would own 20% and 80% would be privately owned. Hamilton wanted to tie the interest of the wealthy to the interest of the federal government.

8. The Bank of the United States The Bank would hold all the debt of the federal government and would issue bonds on the debt. The debt of the United States would be consolidated at par plus interest. This would reward speculators.

9. The Bank of the United States It would issue banknotes on its credit. It would be the sole depository of the money of the government. Because of fractional deposits the BUS would be able to create wealth from nothing. THE BUS WOULD BECOME AN ENGINE OF NATIONAL CAPITALISM…...

11. The Bank of the United States It would issue banknotes on its credit. It would be the sole depository of the money of the government. Because of fractional deposits the BUS would be able to create wealth from nothing. THE BUS WOULD BECOME AN ENGINE OF NATIONAL CAPITALISM…...

12. The Bank of the United States It would lend money for commercial ventures. NOTE THAT THE BUS WOULD NOT LEND MONEY FOR AGRICULTURAL VENTURES. IT WOULD NOT LEND MONEY FOR LAND.

13. n Washington believes that the veto is intended as a Constitutional check on Congress. That is it is to be used by the President only to return unconstitutional bills to Congress. n It submits the Bank of United States Bill to Jefferson his Secretary of State for his opinion on the constitutionality of the bill. The Bank bill passes Congress with little debate. It comes to President Washington for signature.

14. Necessary and Proper Clause To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

15. Strict Construction The second general phrase is, “ to make all laws necessary and proper for carrying into execution the enumerated powers.” But they can all be carried into execution without a bank. A bank, therefore, in not necessary, and consequently not authorized by this phrase. The Constitution allows only the means which are “ necessary “, not those which are merely “convenient”, for effecting the enumerated powers. If such a latitude of construction be allowed to this phrase as to give any non-enumerated power, it will go reduce the whole constitution to one phrase. Therefore the Constitution restrained legislature to the necessary means; that is to those means without which the grant of the power would be nugatory....

16. Strict Construction The second general phrase is, “ to make all laws necessary and proper for carrying into execution the enumerated powers.” But they can all be carried into execution without a bank. A bank, therefore, in not necessary, and consequently not authorized by this phrase. The Constitution allows only the means which are “ necessary “, not those which are merely “convenient”, for effecting the enumerated powers. If such a latitude of construction be allowed to this phrase as to give any non-enumerated power, it will go reduce the whole constitution to one phrase. Therefore the Constitution restrained legislature to the necessary means; that is to those means without which the grant of the power would be nugatory....

17. Strict Construction The second general phrase is, “ to make all laws necessary and proper for carrying into execution the enumerated powers.” But they can all be carried into execution without a bank. A bank, therefore, in not necessary, and consequently not authorized by this phrase. The Constitution allows only the means which are “ necessary “, not those which are merely “convenient”, for effecting the enumerated powers. If such a latitude of construction be allowed to this phrase as to give any non-enumerated power, it will go reduce the whole constitution to one phrase. Therefore the Constitution restrained legislature to the necessary means; that is to those means without which the grant of the power would be nugatory....

18. Strict Construction The second general phrase is, “ to make all laws necessary and proper for carrying into execution the enumerated powers.” But they can all be carried into execution without a bank. A bank, therefore, in not necessary, and consequently not authorized by this phrase. The Constitution allows only the means which are “ necessary “, not those which are merely “convenient”, for effecting the enumerated powers. If such a latitude of construction be allowed to this phrase as to give any non-enumerated power, it will go reduce the whole constitution to one phrase. Therefore the Constitution restrained legislature to the necessary means; that is to those means without which the grant of the power would be nugatory....

19. Strict Construction The second general phrase is, “ to make all laws necessary and proper for carrying into execution the enumerated powers.” But they can all be carried into execution without a bank. A bank, therefore, in not necessary, and consequently not authorized by this phrase. The Constitution allows only the means which are “ necessary “, not those which are merely “convenient”, for effecting the enumerated powers. If such a latitude of construction be allowed to this phrase as to give any non-enumerated power, it will go reduce the whole constitution to one phrase. Therefore the Constitution restrained legislature to the necessary means; that is to those means without which the grant of the power would be nugatory....

20. Necessary and Proper Clause To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

21. Loose Construction It is certain, that neither the grammatical nor popular sense of the term requires the construction of the Secretary of State. According to both, necessary often means no more than needful, requisite, incidental, useful.... And it is the true one in which it is to be understood as used in the Constitution. This leaves a criterion of what is constitutional, and of what is not so. This criterion is the end, to which the measure relates as a means. If the end be clearly comprehended within any of the specified powers, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the Constitution, it may safely be deemed to come within the compass of the national authority. There is also this further criterion, which may materially assist the decision; Does the proposed measure abridge a pre-existing right of any State or of any individual? If it does not, there is a strong presumption in favor of its constitutionality.

22. Loose Construction It is certain, that neither the grammatical nor popular sense of the term requires the construction of the Secretary of State. According to both, necessary often means no more than needful, requisite, incidental, useful.... And it is the true one in which it is to be understood as used in the Constitution. This leaves a criterion of what is constitutional, and of what is not so. This criterion is the end, to which the measure relates as a means. If the end be clearly comprehended within any of the specified powers, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the Constitution, it may safely be deemed to come within the compass of the national authority. There is also this further criterion, which may materially assist the decision; Does the proposed measure abridge a pre-existing right of any State or of any individual? If it does not, there is a strong presumption in favor of its constitutionality.

23. Loose Construction It is certain, that neither the grammatical nor popular sense of the term requires the construction of the Secretary of State. According to both, necessary often means no more than needful, requisite, incidental, useful.... And it is the true one in which it is to be understood as used in the Constitution. This leaves a criterion of what is constitutional, and of what is not so. This criterion is the end, to which the measure relates as a means. If the end be clearly comprehended within any of the specified powers, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the Constitution, it may safely be deemed to come within the compass of the national authority. There is also this further criterion, which may materially assist the decision; Does the proposed measure abridge a pre-existing right of any State or of any individual? If it does not, there is a strong presumption in favor of its constitutionality.

24. The means by which national exigencies are to be provided for, national inconveniences obviated, national prosperity promoted, are such infinite variety, extent, and complexity, that there must of necessity be great latitude of discretion in the selection and application of those means. Hence, consequently, the necessity and propriety of exercising the authorities intrusted to a government on principles of liberal construction.... Loose Construction

25. Necessary and Proper Clause To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

27. The Protagonists

28. Loose Construction and an expanded role for the federal government. An industrial and urban society High protective tariffs Executive power A foreign policy biased toward the British An economy based on paper money and pro-Bank of the United States. Suspicious of democracy

29. Loose Construction and an expanded role for the federal government. An industrial and urban society High protective tariffs Executive power A foreign policy biased toward the British An economy based on paper money and pro-Bank of the United States. Suspicious of democracy

30. n Jefferson was for strict construction of the Constitution and limited government. n For a rural society and small towns. n Tariffs for revenue only. n Legislative supremacy. n A foreign policy biased for France. n He was for hard currency (specie) and he was anti-Bank. n He believed government should be close to the people because it would be more democratic.

31. n Jefferson was for strict construction of the Constitution and limited government. n For a rural society and small towns. n Tariffs for revenue only. n Legislative supremacy. n A foreign policy biased for France. n He was for hard currency (specie) and he was anti-Bank. n He believed government should be close to the people because it would be more democratic.

32. Loose Construction and an expanded role for the federal government. Loose Construction and an expanded role for the federal government. An industrial and urban society An industrial and urban society High protective tariffs High protective tariffs Executive power Executive power A foreign policy biased toward the British A foreign policy biased toward the British An economy based on paper money and pro-Bank of the United States. An economy based on paper money and pro-Bank of the United States. Suspicious of democracy Suspicious of democracy n Jefferson was for strict construction of the Constitution and limited government. n For a rural society and small towns. n Tariffs for revenue only. n Legislative supremacy. n A foreign policy biased for France. n He was for hard currency (specie) and he was anti-Bank. n He believed government should be close to the people because it would be more democratic.

33. Loose Construction and an expanded role for the federal government. An industrial and urban society High protective tariffs Executive power A foreign policy biased toward the British An economy based on paper money and pro-Bank of the United States. Suspicious of democracy n Jefferson was for strict construction of the Constitution and limited government. n For a rural society and small towns. n Tariffs for revenue only. n Legislative supremacy. n A foreign policy biased for France. n He was for hard currency (specie) and he was anti-Bank. n He believed government should be close to the people because it would be more democratic.

34. Loose Construction and an expanded role for the federal government. Loose Construction and an expanded role for the federal government. An industrial and urban society An industrial and urban society High protective tariffs High protective tariffs Executive power Executive power A foreign policy biased toward the British A foreign policy biased toward the British An economy based on paper money and pro-Bank of the United States. An economy based on paper money and pro-Bank of the United States. Suspicious of democracy Suspicious of democracy Jefferson was for strict construction of the Constitution and limited government. For a rural society and small towns. Tariffs for revenue only. Legislative supremacy. A foreign policy biased for France. He was for hard currency (specie) and he was anti-Bank. He believed government should be close to the people because it would be more democratic.

35. Loose Construction and an expanded role for the federal government. Loose Construction and an expanded role for the federal government. An industrial and urban society An industrial and urban society High protective tariffs High protective tariffs Executive power Executive power A foreign policy biased toward the British A foreign policy biased toward the British An economy based on paper money and pro-Bank of the United States. An economy based on paper money and pro-Bank of the United States. Suspicious of democracy Suspicious of democracy n Jefferson was for strict construction of the Constitution and limited government. n For a rural society and small towns. n Tariffs for revenue only. n Legislative supremacy. n A foreign policy biased for France. n He was for hard currency (specie) and he was anti-Bank. n He believed government should be close to the people because it would be more democratic.