Hamilton planned to create a National Bank, which would be called the First Bank of the United States.
For Hamilton, the creation of this bank would be beneficial because it would allow the centralization of national credit and let the federal government handle the debts of the states.
This plan was controversial because:
- The Constitution did not provide for the creation of a central bank.
- This made the central bank unconstitutional, that is, outlawed.
- The states believed that this would be dangerous, that it would give too much power to the federal government and that it would weaken the states.
The existence of national credit and Central Bank was something positive in Hamilton's plan and we can see these two elements even today.