Alexander Hamilton proposed a plan to create a national bank of the United States. He modeled his plan on European central banks, which used their government’s money to energize the economy. He believed that the bank would help stabilize the economy by exerting control over credit, interest rates, and the value of the currency. Jefferson …show more content…
The resolutions tested the idea that the state legislatures could judge the constitutionality of federal laws and also nullify them. The resolutions did not do much to the Alien and Sedition Acts, however the idea of a state being able to nullify federal laws did not go away. This presented as a constitutional issue because Madison stated that by enacting the Alien and Sedition Acts it meant that Congress was exerting a power that was not delegated by the Constitution and also completely forbidden by one of the amendments. Both the Virginia and Kentucky Resolutions encouraged the other fourteen states to come together in declaring that the Alien and Sedition Acts were unconstitutional. The ideological conflicts that arose were between the state legislatures and the federal government. The resolutions were an attack on the Federalists’ broad interpretation of the Constitution. The resolutions declared that the Constitution simply established a compact between the