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HAMILTON said in his Defense of the Constitutionality of the Bank (Feb. 1791): the Congress has all the powers it is not specifically denied so if it doesn’t say you can’t you can! POV of the loose constructionists.
MADISON (also Jefferson and Randolph) said: no way, if the Constitution doesn’t say you can, you can’t. Besides, the elastic clause only allows for necessary bills, and this is NOT necessary. POV of the strict constructionists.
In the end Washington agreed and the bill was passed and helped the economy. - Set a precedent for enormous federal powers - The elastic clause -- Provided for passing any laws "necessary & proper" to carry out the powers vested in the various governmental agencies.” Also known as Congress’ Implied Powers
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