The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-10-20
UNITED STATES BANK
IT'S FATE DURING THE ADMIN
ISTRATION OF PRESI-
DENT JACKSON.
REASONS WHY IT WAS SET ASIDE

n Engaged i'm Partisan Politics Used
Its Funds to influence Public OFF,
cials and Then Resisted Investiga-
ton of its Books by COngress--The
Specie Circular Issued in 1896 by
president Jackson---Deals In the
Public Lands.
Written for Sunday News and Observer.
WASHINGTON, u. c., Oct IS.
The Bank of the United States deserv-
ed to be set aside as the depository of
the public funds, even in that age, when
banks, or, at any rate, bank of some
sort, was deemed an essential appendage
to governments, as fiscal agent, ana
regulator of the currency. 1t should
have been set aside because 1t engaged
in politics took sides with one party
against the other. In its warfare it
scrubbed not to use the money of the
stockholders. and of the United states
in paving its forces Investigation of its
books by Congress was resisted, but
damaging facts could not be kept out of
view. This use of the funds of the bank
to influence members of Congress became
notorious. Not that all members could
be reached by such influences, of course.
A large majority of the friends OF the
bank were far above the reach
OF such influences, and were
above suspicion. "Mr. Calhoun" says
Mr.. Benton, sin his speech, absolved
himself from all connection with the
bank or dependence upon it, or favors
from it. Certainly there was
no necessity for Mr.. Calhoun to make
this daclaimer His character for pecu
MARY integrity placed him above the
SUSPICION of a venal motive
Mr.. Clay, also explained his connection
with the bank, as having at one time
been its attorney; and as having, twelve
or fifteen years before the time he was
then speaking, become indebted to the
bank. as an endorser for an estimable
friend, then deceased, who failed, but
by rigid economy, he (the endorser) had
paid off the debt.
Mr.. Benton adds: "But it was not
every member who could thus absolve
himself from bank connection and de-
pendence. The list of Congressional
borrowers-or retainers was large-not
less tildu MY vi LnO lOlElGl dt q tALAC3
and score of the latter; and even after
the failure of the bank, and the assign
ment of its effects, aud after all possible
liquidations had been effected by taking
property at high valuation, and
liberal resorts to the profit and loss &C
cunt, there remained many to be sued
by the assignees, to whom their notes
were passed-and some of such early
date as TO be met by plea of the statute
of limitations in bar of the State de-
m md"
The bank was re-chartered by the
Legislature of Pennsylvania, but in 1871
it made an assignment Mr.. Biddle was
prosecuted at the instance of the sto x
holders, was arrested, but was released
on habeas corpus.
After the veto of the bank and the re-
moval of the deposits, Biddle became
desperate, as was eyinced by his seizure
of the dividends due the United States,
on it's stock in the bank. The amount
was $3.50, 04i. This was on the pretext
OF claim for damages, which the bank
set up on protested bill of exchange,
sold to it on the faith of the French
Treaty 1t was protested for non-pay
ment. This was taking the law into his
own hands General Jackson in his
message said: SIT would az soon
have been expected that our
collectors would seiz3 on the Gus
toms, or the receivers of our land
offices on the moneys arising from the
sale of our public lands, under pretences
of claims against the United States, as
taat the bank would have retained the
dividends"
Tae bank was sued and the money
collected under execution.
The Specie Circular was issued July II,
1886. II was measure of great impor-
lance, and it was the occasion, if not the
cause, OF the financial collapse of the fol-
lowing year. 1t burst the bubble of the
inflated currency, and thus caused
universal suspension of specie payments.
The Wings laid the whole blame of the
imitation to the removal of the deposits
of the public money from the Bank of the
United States to the State Banks.
They alleged that the effect was TO slim
ulate the State Banks which received the
deposits to excessive issues of their paper
currency, which eventually they were IN
able to redeem. Bat it is inconceivabe
that the diversion of the current reve
nue. from the custody of one bank to
that Of g. dozen or more, OF equal re-
sources could have had the effect at.
tributed. For, in the fist place, the
funds in the Bank of the United States
were not transfe rred to the State Banks,
bat they remained to b. drawn out,
from time to time, by the Treasury or
ders, or drafts, as had usually been
done, id payments or disbursements, by
the government. The act of so-called
removal of the deposits, therefore
only made a change in the place of de
p1sits, of the current revenues.
IN the second place, there were more
taan seven hundred State or local banks;
and there could be no reason why they
should all, or nearly all, be inflated by
the act which benefited dozen of them.
The cause of the imitation, therefore,
must have been deeper. II must have
been owing to the rapid development