Why did Thomas Jefferson oppose Alexander Hamilton's proposal for a national bank?

• A. He thought it would lead to higher taxes for farmers.
• B. He believed it was unconstitutional and exceeded the powers granted to the federal government.
• C. He wanted the federal government to control all banking activities directly.
• D. He feared it would eliminate all state banks immediately.

Answer: (B)

Verified step by step guidance

1. Understand the historical context: Alexander Hamilton proposed the creation of a national bank to stabilize and improve the nation's credit and to manage financial business for the U.S. government.
2. Identify Thomas Jefferson's viewpoint: Jefferson was a strict constructionist, meaning he believed the federal government should only exercise powers explicitly stated in the Constitution.
3. Analyze the constitutional argument: Jefferson opposed the national bank because he believed the Constitution did not grant the federal government the authority to create such a bank, thus it would exceed the powers given to the federal government.
4. Consider Jefferson's concerns about federal power: He feared that establishing a national bank would centralize too much power at the federal level, potentially at the expense of states' rights.
5. Summarize the opposition: Jefferson's opposition was primarily based on his interpretation of the Constitution and his desire to limit federal government powers, rather than concerns about taxes, direct control of banking, or the immediate elimination of state banks.