The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-08-13


In his second annual message dec
7, 183O), President Jackson outlined
the kind of national bank he favored
and almost reached the position o
the sub-treasury people of today. HI
at least favored bank to be otficereC
by treasury officials, and dealing di
rectly with the people; and took occa
sion to say that while the kind of Q
bank he favored was of very limited
powers, yet Gin times of public emer
gency, the capacities of such an insti
tuition might be enlarged by legisla
tive provisions But here is his
recommendation in full upon thai
subject:
Jackson's Views.
SECOND ANNUAL MESSAGE, DECENI
BER Z 1880.
"The Importance of the principle
involved in the inquiry whether il
will be proper to re-charter the bank
of the United States, requires that
should again call the attention O.
congress to the subject. Nothing has
occurred to lessen in any degree, the
dangers which many of our citizens
apprehend from that institution, as al
present organized. In the spirit O.
improvement and compromise which
distinguishes our country and it's in.
stitutions, it becomes us to inquire
whether it be not possible to secure
the advantages afforded by the pres.
ent bank, through the agency Of q
bank of the United States so modified
in it's principles and structure as to
obviate constitutional and other OBJ
! jections.
"It is thought practicable to organ
ize such bank with the necessary
officers, as.a branch of the treasury
department, based ON the public and
individual deposits, without power to
make loans or purchase property,
which shall remit the funds of the
government, and the expenses OF
which may be paid, ifthought advisa-
BILE, by allowing officers to sell bills OF
exchange to private individuals at a
moderate premium. Not being a
corporate body, having no stockhold-
ers, debtors, or property, and but few
officers, would not be obnoxious to
the constitutional objections which
are urged against the present bank;
and having no means to operate on
the hopes, fears, or interests of large
masses of the community, it would
be shorn of the influence which
makes the bank formidable. The
states would be strengthened by hav-
ing in their hands the means of fur
nishing the local paper currency
through their own banks; while the
United States, though issuing no pa
per, would check the issues of the
state banks, by taking their notes
in deposit, and for exchange
only, SO long as they continue
to be redeemed with specie. In
times of public emergency, the capac-
tiles of such an institution might be
enlarged by legislative provisions.
But you may suppose that after this
General Jackson changed his mind
as he had perfect right to do, and
opposed all national banks at the time
of his veto. An examination, how
ever, of that document reveals the
fact that he re-affirmed these views
upon that occasion. In returning the
bill to congress without his approval
on July 10, 1882, he used this language
at the very inception of his message;
ga bank of the United States is in
many respects convenient for the gov.
ernment and useful to the people
Entertaining this opinion, and deeply
impressed with the belief that some OF
the powers and privileges possessed
by the existing bank are unauthorized
by the constitution, subversive to the
rights of the state, and dangerous tC
the liberties Of the people, L felt it my
duty, at an early period of my ad-
ministration, to call the attention OF
congress to the practibility of organ
izing an institution combining all its
advantages, and obviating these OBJ
jectiOns. [ sincerely regret that, in
the act before me, can preceive none
of those notifications of the bank
charter which are necessary, in my
opinion, to make it compatible with
justice, with sound policy, or with tt e
constitution of our country"
Thus we see that Jefferson believed
that the circulating medium should
be controlled exclusively by congress,
and Jackson concurred and recon-
mended national bank, officered by
government officials, and dealing di-
rectly with the people.
L shall weary you with only one
more reference, and that will be to Mr.
Calhoun. He was the sublime apostle
of states rights Democracy, the de-
fender upon all occasions of the rights
of the states, and jealous and alert
foe to every encroachment of the gen
eral government. Surely no one can
accuse him with either demagoguery
or dishonesty, for he was the boldest,
bravest, truest, most eminent son the
South every gave to the country; a
patriot in whom there was no guile; a
gentleman without fear and without
reproach. In speech made by him
in the senate on September 10, 1887,
on the bill authorizing the issue OF
treasury notes, he used this language,
and 1 call your special attention to the
closing paragraph of the quotation:
CALHoUN'S VIEWS.
Con what, then, ought paper cur
rency to rest? L would say, on de-
mand and supply simply, which regu-
lates everything else-the. constant
demand which the government has on
the community for it's necessary sup
plies. A medium, resting on this de-
n1and which cip1plv ohliratac tho