The south-western. [volume] (Shreveport, La.) 1852-1870, 1866-09-05
a Reminiscence-Bank of the United States.

since the expiration of the charter of the last national
bank, and to our younger readers it may not be un-
terestng to revive brief recollections of the
eventful history to which have been led by one of
the recently published conversations between the late
senator Stephen 4. Douglas and Col. Cults.
/ 1t was on the recommendation of Alexander Ham
ilton first secretary of the treasury that the two
houses of congress in 1871 passed bank charter Gen
Washington expressed serious doubts to its corsti
tutionality, and took the opinion of his cabinet in
writing. Thomas Jefferson, secretary of State, and
Edmund Randolph attorney general, sided with Wash
ington, while Gen. Knox, secretary of war, sustaned
/ Hamilton. On consideration of the whole subject,
| Washington of opinion that the bank uncbn-
sttutona and at his request, veto message was
prepared by james Madison. Finally, however, ind
with reluctance, he signed the bill.
The first charter vas for twenty years, from l79J to
1911 and on application for its renewal, the demo
cratic party resisted constitutional grounds she
old federal party sustaining it, 1t was on this occasion
that Henry Clay made his first great speech against it.
and, the bill 70: re-charter being defeated the bank
expired. Its handsome building, Third, between
Chestnut and Walnut streets, Philadelphia, was EuF-
chased by Stephen Gfrard, and occupied as his baak
ing house until his death in IS37 or 'SS.
The war of 1912 produced an impression that a ma
tiona bank necessary restore the finance cur
rency and credit of the country, which had become
greatly disturbed and in 1915 bank charter passed.
being supported and opposed by both parties Mr.
Madison vetoed 1t, but next year John Z. Calhoun,
leader of the republican democratic Tarty, inEro-
duced bill for a national bank. 1t passed both
houses, and Mr. Madison waving his scruples, and
yielding to what seemed to be the public opinion of
the country, signed it. This charter also ran for
twenty years, to expire in 1886 magnificent mar
bic banking house erected on Chesnut street,
Philadelphia, (uow the United States customhouse, on
the model Of the Parthenon, the celebrated temple of
Minerva, at Athens
On the 4th of March, 1929, Andrew jackson be-
came president, and in his first message to congress
called the attention of the country to the bank, With
ntnIaIon3 of doubts to It's constitutiOnalty. AT
the session of 1882 Immediately preceding the mkt
presidential election, and with view to influence 1t,
the opponents of Cen jackson brought in bill for
the recharter Of the bank and passed II through both
houses of congress- in order to compel him to gN it
before the election, to encounter tile formidable
opposition of the bank which considered theli rs
little less than omnipotent. Large numbers ot!hiS
best friends, including majority of the leading men
in both houses OF congress, urged him to sIgu the
bill but to all their entreaes he replied that the
bank was " unconstitutional, corrupt and lnsoVent
though its stock was then selling at $3.50. WhowCuId
have believed that in four five years it would aot
bring cent in the dolar9 Jackson, with more than
Roman firmness, declared that he would veto it. il it
the last of his life, and if it sunk his party
with him telling those of his timorous friends who
afraid of the consequences that they coIdde
ser and to 90 to the bank, and lie Would whip
the whole of them.' He vetoed it on the 10th Of
july 1882 aud in the following November
elected president by still greater majority than. at
first.
In September, 1855, president jackson determined
the bold step of removing all government deposits
from the bank and its branches, and transferring them
to the State banks The secretary of the interior was
5. D. Ingham, of Pennsy ylvania who refused to- issue
the order. He was removed, and VIM. j. Duauet of
Pennsylvania, appointed, who also declined to act as
jackson insisted on, upon the ground that thG bank
was corrupt and insolvent using its immense funds
tl,, t,,,I
corrupt the people. Mr.. Duane was promptly re-
moved and Roger B. TaneJ, an eminent member of
the Maryland bar residing in Baltimore, was apHoAted
in his place. By him the presidents wishes we're
ried out and the excitement throughout the cDuftry
became still greater The bank Immediately curtasled
discounts everywhere producing the greatest distress
and panic and, when congress met in the winter of
1888, the nation seemed to be on the of a CON
wilson only inferior to that through which we have
lately emerged.
The senate passed resolutions Of ccnsure, and the
house adopted resolutions in favor Of the return of
the Deposits the opposition being conducted by Clay
Calhoun and Webster. Many Of Jackson's Friends
deserted him, but he never quailed for mPmant
Chief among the few who adhered to and sustained
him was senator Thomas II. Benton, of Missouri who
vowed that he would never rest until the resolutions
of censure expunged from the seuates Journal
Jackson appealed to the people at the next State
elections, and they responded by returning majority
in favor of him and his policy in both houses of CON
gress. This was in 1884 and '35 and on motion of
Mr. Benton, the senates Journal Of 1883 contaihing
the celebrated resolutions of censure produced,
and the secretary, Mr.. Asbury Dickens, diregtel to
draw broad black lines around them in view of the
whole body ard to ponspicuousy write on each side
"Expunged by order 6f the senate, -, 1885"
The ban now determined to reverse its policy, and
began enafgrng its discounts to such degree II to
stimulate the prices of property and stocks and the
importation of goods, beyond all parallel, and the
State banks overHowiug with the surplus of
the national rcvenue-in bank notes. Gold had
long before almost totally disappeared, and what fttle
Of il the banks possessed nearly all in foreign
coin The only use to which it put we'd
ding occasions it being the fashion to give the clergy
bis fee in gold, and we have known considerable
difficulty to be experienced in obtaining it for That
purbdse, with much grumbling on the part of hank
telers IN seafching for it.
As specimen Of the wild spirit of speculation pro
duced by the banks expansion policy it may be
toned that the sales of public lands, which had form
ly bach about S5, ,0G0,000 year, ran tip in 1885 to
S24 900 900. To check the ey-which it instantly
did-Jackson issued his famous specie circular,
forbiddng all government officers TO receive ANYTHING
but gold or silver in pa ment of duties o. for lands
On the 4th of March, 1887, the charter Of ths ma
tional bank expired but the State Of Pennsylvania
had in the mean time re-tharered it as State lpst
tuition under the name of "the United States bank,
instead of the bank of the United State" On wind
ing up the affairs of the old bank, among other stu
Of $500, ,0O0, which it always supposed was .eX
pended in engineering the bill fer fecharer through
the Pennsylvania legislature. TIE new bank had scarce
" time to effect its organisation before GyeItt5 prcged
how truly the sagacous and tar-seeing jackson lad
pronounced it corrupt and insovent." In May, 1887
the explosion came, and within ten days there wasnot
spece-paying bank in the country. Universal bank
ruptcy federal State and individual prevailed through
out the length and breadth of the land.
Mr.. Van Buren had succeeded Gen. Jackson as
president in 1884, and he Immediately issued procla
nation calling special meeting Of congress. In bis
message to that body he recommended what was
called the sub treasury scheme" by which he pro-
posed to divorce the government from all banking in
stitutions; to keep the public revenue in the Unhed
States treasury and for its receipt and disbursement
to appoint assistant in all the principle
cities making it criminal offence to receive or pay
ANYTHING but gold OR silver, loan any public morey,
deposit It in any bank it for any but piElic
purposes This scheme became for the time the great
issue between the wing and democratic parties, the
former opposing and the latter advocating it. Mr. Cal
houn parted with Clay and Webster, and came tosits
support The bin passed. but it required many years
for the country from the terrible revuson
it had pxperienced and while still suffering from she
general bankruptcy the presidential election Of l&40
came on. The wings charged the democratic party as