Debate between hamilton and jefferson over national bank led to the formation of the system

Debate between Hamilton and Jefferson over National Bank led to the formation of the Federal Reserve System .

Explanation:

The banking system was the worst in the beginning of the year 1907 and this resulted in confusion in the weak banking system. This confusion and chaos in the banking system has made the US congress to enact a Federal Reserve Act in 1913.

Hamilton was of the view that national banking should be in place for stabilizing the financial business and to improve the nation’s credit. Hamilton and Jefferson have a difference of opinion on the American national banking system.

They had their no own opinion on having a system which will resolve the Revolutionary War debt and about having a single national currency, and to boost the American economy. Finally Hamilton formulated the bill for creation of a national bank which Jefferson objected.

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