The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-30
Has Been Overlooked by Mckinley and
Secretary Gage.
GOVERNMENT REVENUE WITHOUT INTEREST
what Old Hickory jackson DID
When Called Upon to Face IA Very
similar Emergency.
New York World.

1t has been tried twice before, with re-
suits that ought not now to encourage its
repetition
Hamilton began 1t in 1791 and that first
experiment was abandoned very few
years later, the government selling out its
bank stock and refusing to renew the
banks charter. At last, in 1916. congress
was persuaded to make the government a
partner in Nicholas Biddle's banking bust
nues over to him to use as his own. just
as Mr. Gage is doing with the National
City bank now.
Under this new arrangement the Bank
OF the United States was chartered for
twenty years, with capital OF $35, 600,
of which the government furnished $5,0O0.-
600 as stakeholder. There were twenty
five directors of the parent bank, of whom
the government named only hve--a help
less minority, but still a representation.
Mr.. Gage has improved upon that, for
in the directory of the National City bank
the government has no representation
whatever
The United States hank had branches in
board of directors in which the govern
ment was not represented.
Yet to this bank, which the government
did not control. congress turned over the
management of all the Nations fiscal af-
fairs. 1t lent the bank all the money in
the treasury. charging it no interest just
as Mr.. Gage purposes to lend his chosen
bank all the internal revenue collections
OF the Nation, amounting to $500, 900, 600
oh it,a, e., ,l..
and taking only such bond security as he
may be persuaded to regard as sufficient.
Congress further left it to the United
states bank to redeem the ne turing gov
eminent bonds and to cash all pension
claims with the government S own money,
commission for the service
rendered.
POLITICAL BANKING.
The institution thus favored soon be.
came a powerful political agency, as was
inevitable. 1t must guard its own inter.
ests. 1t had being and was there fore en-
dowed, as all beings are, with the instinct
of preservation. 1t wanted a renewal
of its charter and a perpetuation of its
extraordinary privileges, and these could
come only through the election of presi-
dents and senators and congressman fay-
orable to its interests. Biddle strenuous
~ protested 10 the last that the bank
LOOK no part in politics. and directly per-
maps IL did not. But his protests. when
CLOSELY scrutlniZed, amount in fact to
pleas In justification, documents explain-
ing why in the very nature of things
those in charge OF the banks affairs were
forced TO use the institutions power over
the country's commerce and industry for
political ends. In the Portsmouth IN. HO
case this was done so openly and flagrant-
ly as to create scandal of large pro-
portions.
Andrew jackson became president in
1872. He did not expect to serve more
imam one term. Like some other presi-
oents. he had fixed purpose to refuse re-
election, and, like them, he abandoned II
The bank would outlye his term He re- |
sarded It's partnership with the govern
lnehl Us unconstitutional, unwlse and no |
ltically dangerous. So he appealed TO |
congress to make an end of the arrange |
nent He urged. in repeated messages. |
tnat II the government must transact its |
liscal business through a bank IL should
Itself own and control that bank having !
no partners in the business. no stocknold- |
ers and no stock liability. His conception |
was precisely that which later resulted
In The present subtreasury system. Yet
with that system in full operation, with
The government fully equipped TO do its
)wn banking, Mr. Gage now selects a bank
and turns over to it all the internal reye-
nue receipts without interest or compeu-
'ation.
JACKSoN'S FIGHT.
In Jacksons attitude the bank monopo-
lists scented danger. In 1882 Jackson was
candidate for reelection. and it was
probable that If he should be reelected
he congress- elected with him would be
strongly antagonistic to the bank.
The bank determined. therefore, 10 ask
It once for renewal of its extraordinary
harter privileges. The congress then sit
Ing was known TO be favorable, and ac-
oruins TO the stories circulated ut the
lme, the bank took pains TO make il more ,
lNorable congressman who wanted
N accommodation of $4,000 was promptly
old that he could have twice the sum il
% desired, that IL he had no indorser
eady he could furnish one later, taking
he money meantime and that any in
orser he might recommend would be ac-
epted.
Under these benign influences congress
assed an act to renew the charter. Jack
on promptly vetoed Ii IN message G
which so strongly set forth its folly and,
- jackson contended In spite OF SUI
RENE court decision, its demonstrations
lity. that his biographer (Parton) writes
oncerning II:
1t settled the question. And 1t may
o safely predicted that while that mes
age epdures, and the Union as 1t is now
instituted endures. a bank OF the United
tates can never exist"
Curiously enough. the bank welcomed
his veto message. The monopolists con-
IDENTIFY believed that 1t would work Jack
on's overwhelming defent.
The New York newspaper organ OF the
turned against the presi-
ent and Numbered with all its guns for ,
Is destruction. Other newspapers fol-
'wed its lead, and the bank people felt
IRE OF victory. How badly they mis-
idged the sentiment OF the country was
nown In the result OF the election. Out
2SS electoral votes Jackson received
10, Clay ~ and the rest We're divided
etween William Writ and John Floyd. {
CRUSHED THE BANK.
The country had overwhelmingly de-
ded against lending the National reve- /,
ues to anybody to bank with. Mr.. Gage {
nd Mr., Mckinley seem not TO have read q
lat instructive chapter OF American his '
Try,
Reelected on this issue. Jackson set !,
work at once TO carry out the popular r
III that the partnership between gov /
'nment and bank should be dissolved. He r
merely believed that the bank was in-
'lvent. for which belief he had ground 9