The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1896-01-05
\ IEXSNS FIGHT AGAINST MONEY POWER
r+anic Struggle the Story of Which Is of Pc
Cu1iar Interest just Now.

-. "''SN' "pui"uS' iull OF 1ar-rea ciiIllg
schemes ana worldwide coinbinn tons.
IN nm, perfect representation of Pm.
tocracy, Andrew jackson, the man of
the people, found his most dangerous
adversary. 1t was lie who in 1871 in.
vented the branch dra fts," an extrenely
convenient device for expanding and
contracting the currency. They were
III, counterpart OF bank notes. They
were drawn for even sums by the cash
yer 9i any, branch on the parent bank.
TO the order OF some officer of the
branch, and Endorsed by the latter TO
bearer. They then circulated like bank
notes There was absolutely nothing in
the banks charter which authorized
their issue and Benton characterized
them correctly as currency by construc.
non: When the branches issued these
ufaits they were not lending their own
capital, but that of the parent bank. This
WIS great stimulation for their issue.
me borrowers used these dra fits to
! sustain what were called 'racc-horse
DIS These We're drafts drawn between
the different places where there were
branches, so that IL bill falling due at
one place was met by the discount of a
h'll drawn on another place This sys-
TEN was equivalent to unlimited rcye-
nues. II kept up constant imitation
OF credit. Still at first they did not at
tract much adverse critcism-only such
keen observers as Benton detected their
inherent danger.
During the brilliant period of National
expansion and prosperity which followed
Monroe's administration the bank pros.
pered with the rest of the country, and
by unthinktng people, especially among
the well-to-do was considered as one of
the main causes Of the good times. The
supreme court, at that time still strongly
fedcralistic, had passed favornbly upon
iti consututionality on the ground that
It was necessary" to the proper per-
formance of the functions of tho Ma
tional government. The bank had also
made for itself many friends. not only
among newspapers, hut also among mem
bers of congressman by any such vul-
gar means as open bribery, but by being
always ready to discount their notes
without being too particular about the
collateral. and also by employing proni-
nent senators MS attorneys and special
counsel This was one of ,Iackson's
chief charges against the bank, and
though naturally there was no positive
proof brought out, yet we have the word
of eX-PreSdent John Quincy Adams, an
Investigation of 1892 this point was
droppcd because it was found that n
large number of congressman of both
parties had had loans or close conmec-
lions with the bank.
So great was the banks power that
ministrntion in 1S9S u I, Horhonr Of
Virginia Lrongbt forv.,rd a ,'ro',osi,i,,r
n seji tbo sal, nu,moa S.. ,1 I-,;toI
Stotns II WIS only vo+nd dow by III
IN q bnt his mntivos v.oro ;n,,'a,oha
and the most sinister dosirns ;n,nntcd ~
him by the friends of the bank for daring
to make motion which did not coincide
and rnsol6sh institutinn Also nrnno.
sitinn made hr Rentnn 70 Inv mn tbn
old rovolrtion3rv q non conf bnppds or
81 ond IN eovo tho ,,o,,orn,,,on+ sa,-croi
million dolIars wos nromntiv votod dow
in thn senate of,ar nonsnlt,t Hon Win
Biddle md otbars hacanSn the bnnk did
moi wish fo have so .-rnar n SIM drawn
from it's donosits ot +hot lima
|. Snch was the Strength of the bonl,
when i'm 1s2S Andrew JacEenn wns
eloctnd nresident of The I-nited St,tes
II soo,raJ az stroncIv ;ntr.mcbod l., tbn
aor,try as the nrotectivn system, v.ns
ION vc,rs oga lfnt Androw 1nclsor
Who had fomyht his wav nm from ohiert
nnyorty or'id sovn.a 9ud sa,niNcj,,ili1c5
s,,rrnrrdinrs y,"s - Jcfrn-sonion of H.
III schnoI ia had an ,,ns,veru;m, hoI;ae
T., 30 ,,,,.,', 'l',' s ~, ,,mS l.,
Stotas, rirhts IN strict constrnctinp of
tho constitution and in moJpst and
ocono,nicsl Nationni govorumcnt which
,bonId ,nnddlo 90 iitt,n ~ nossihIo ,vitt
tbo nnonio md ioore ther 10 no banny
inv; IN ,b SGiV an" t ~ Vothing couid he
,or e"o o,,,osod ~ III idoos th"r cnror,,.
MANI V nortrersbr in "rivate mess
IN ~, 10; ;rstit,,tinr r,binh tenaed w. be-
i a" noonono,Y. and 70 crush nut in
do,,n,5'rt aon,nsst;+;nn o,5 ,bnugb tho
LonI, bad rot shawn nv, nntn inter
sarn,, n" 10 rc,;,;,-s ,'nr lis nrincinlrs
IA ~ :" "a py"i his o,sorration Of the
S s.u hnn,,S "' nf ,Tnnnossce md Ilcntuckv
hod ;, mT'nn hou, nernicious such in
,,nH .i,,.,o"t ooi,d pV Nv, ans how certai, i,
rasVt,',e rD'''n Je tbnra mns No reason
w WV ~ oot ntsoo ns' f croot Sat;onol
N Mni ' sho he VI ,ror tbnp tbnse Of
i a,,n ,ut;.,,t; o ' ,tnr os II ovod lis
,eSs,' ~, ~ nTi.;os ,rS+ nnrforce
80 ~ H., i;t;cs
'"So "a, a. PGrst arr,,,l ,rossocc no.
,,J II, 800 ss Nr Tno, "n" ca,,nd the alton
en-. .; 80, ~ ~, raa+ moi tho
,iun =, uInEr,s1 ~ Wv, s o,niv for n
nulin Nv" 'h"rts- o,a in n;1or $50
ten; "a. VI ~ .a,,itirn tr",, nroo;ni-
u,olu .ne us scb IN.
tnntS !" ri, ,ni,Isu'' n a s',,.h Jeen ne.