Were Alexander Hamilton’s Financial Plans Unconstitutional?

Alexander Hamilton’s financial program can to some degree be regarded as constitutional because it does not violate the basic principles of the Constitution. His financial plan was strongly opposed because it is said to be unconstitutional. However, this is untrue because the constitution, does not state the government cannot follow the actions of Alexander Hamilton’s financial plans. Hamilton’s ideas were written in the “Report on Public Credit”, the “Second Report on Public Credit”, and the “Report on Manufactures”. The plans main ideas were to absorb all state debt under the national government, excise tax on whiskey, create a national bank, and aid manufacturers with tariffs.

Initially, Hamilton’s first report stated the necessity of a national government to absorb the debt of the state governments. The national government is given the power to absorb all state debt because in the constitution it does not state the national government cannot absorb all state debt. Furthermore, when the “Second Report on Public Credit states that the national government can create a national bank or excise tax on whiskey it is fully justified. The national government is fully justified to create a national bank because of the Necessary and Proper Clause, which gives the national government the ability  “To make all Laws which shall be necessary and proper for carrying into Execution the foregoing powers, and all other powers vested by the Constitution in the government of the United States or in any Department or Officer thereof,” (Constitution Article I, Section VIII). This allows the national government to make any laws that are necessary to function properly, and the national bank is necessary to function properly because it would help fix national debt, which is necessary for the United States to function properly or succeed. Additionally, excising tax on whiskey is constitutional because it states in the Constitution “Congress shall have the power to lay and collect taxes, duties, imposts, and excises, to pay debts and provide for the common defense and general Welfare of the United States” (Constitution Article I, Section VIII). This is an enumerated power, or it directly states the power the national government has to regulate taxes. Moreover, this also justifies the idea of relieving taxes from manufacturers because the government is able to control taxes, thus being able to relieve taxes to a few to help it properly function. Thus, Alexander Hamilton’s financial programs are justified and constitutional.