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The Washington administration was the first to bring together in the cabinet of the United States the Secretary of State Thomas Jefferson and the Secretary of Treasury Alexander Hamilton Jefferson and Hamilton began to take different views when the government began to address the issue of the old war debts and the worthless paper money left over from the days of the Confederation Hamilton suggested that the government should create the Bank of the United States which would be a public-private partnership with both government and private investors The Bank of the United States was to handle the governments banking needs Jefferson protested because this was not allowed by the Constitution Hamilton opposed the view of Jefferson and stated that the Constitutions writers could not have predicted the need of a bank for the United States Hamilton said that the right to create the Bank of the United States was stated in the elastic or the necessary and proper clause in which the Constitution gave the government the power to pass laws that were necessary for the welfare of the nation This began the argument between the strict constructionists Jefferson who believed in the strict interpretation of the Constitution by not going an inch beyond its clearly expressed provisions and the loose constructionists Hamilton who wished to reason out all sorts of implications from what it said Hamilton and Jefferson began to disagree more and more Hamilton wrote nasty anonymous articles in John Fennos Gazette of the United States and Jefferson responded to him in Philip Freneaus National Gazette Jeffersons Notes of the State of Virginia in 1787 stated that rural life was beneficial to the government because cities and other areas of large population created poverty disease and corruption Jefferson believed that the small farmers where the backbone of the United States While in the Report on Manufactures of 1791Hamilton stated that the government should be used to develop cities industries and trade
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