Why did Alexander Hamilton think a national bank would strengthen the central government?

Question

Question 5 options:

The bank would have the power to regulate interstate

The bank would encourage foreign competition for manufactured goods

The bank would create a monopoly that would eliminate state banks

The bank would help provide stability for the U.S. economy

Answer 1

Alexander Hamilton believed that a national bank would strengthen the central government primarily because the bank would help provide stability for the U.S. economy. He argued that a national bank would create a uniform currency, facilitate government transactions, and help manage public credit, which in turn would promote economic growth and stability. Additionally, having a central institution to manage financial matters would enhance the federal government's authority and capacity to respond to economic challenges.