Los Angeles herald., 1909-11-26

discounts to favored persons. The Bal
timore branch was the worst offender,
and it managed to lose $3000,0OO in a
few years. Congress investigated the
bank in 1919 and found conditions so
bad that a change was demanded.
Langdon Cheyes. who as speaker of the
house had cast the bhciding vote which
defeated, the rechaE Eof the first bank,
and put the ba9ik INA fair footing.
Prosperity retfirnt to- the country,
and when Nicholas ddle. became pres
to it had disaps ID and- the bank
was fulfilling ~ .1irements of it's
charter save or 9Sc' e1aded the intent
of the law reau--x IL to furnish a
staple and uniform currency by maxi
ing its notes redeemable only at the
branch bank which Issued them. This
required shipments OF money from one
part of the country TO another, ana per-
mitted the bank to make large profits
by the sale of it's drafts. This was one
of the principal arguments used by
jackson in his fight upon the institu-
tion.
Under Biddles management the bank
grew to great strength, and was hon
estly administered for the benent Oh
the whole country. At the beginning
of Jackson's first administration In 1929
II was an institution of commanding
importance. It had not been mentioned
In the political campaigns of 1924 and
1928, and was generally accepted as 81
permanent settlement of the national
financial question. IL had capital OF
$35 900. 900, the public money on deposit
was about 81, 900 900, its private deposits
about as much, it's circulation over $12.-
600, 900, its discounts more than S4O,O0OOOO
a year, and its profits $3,0OOOO0 annu-
ally. 1t had twenty-five branch banks
and q marble banking house at the
head office in Philadelphia. It's notes
were as good as gold all over the world,
and it received and disbursed ali the
revenue of the nation. Considering the
fact that the United States then had a
total population Of only twelve million
people, the bank was a mighty institu-
tion.
jackson in his first message to con-
gress called into question the consti-
tutionality of the banks charter, sug-
gesting that the matter be considered
by congress, as the charter would ex-
pire within seven years. He suggested
that the national bank ought to be or
ganized on the basis of the credit of
the nation, thereby making II purely
governmental bank and avoiding the
constitutional question. But at that
time Jackson had no idea of destroying
the bank.
Isaac Hill, member of Jackson's
Kitchen cabinet" attempted to get
the scalp of Jeremiah Mason, the man
ager of the branch bank at Ports
mouth, N. II. Biddle and the bank
resisted. and thus placed themselves
In opposition to Jackson. This incident
has been made the basis of Jackson's
resolve to destroy The institution, but
there is reason to believe that it has
been too much emphasized Mr.. Biddle
and Mr.. Clay despised Andrew jack
son. They looked upon Jackson as an
uncouth man of the people, unfit to be
president, and even more unfit for de-
cent society. They sneered and scoffed
at him, they underestimated his power
and, strange to say. they even delight
ed in making him furious. 1t was Bid
dies aristocratic contempt for Jackson
and Clay's overestimate of his own
strength which destroyed the second
bank OF the United States quite as
much as II was Jacksons pique at
being unable to dislodge Jere Mason
from his Portsmouth berth.
The best friends of the bank, both in
and out Of congress. advised against
asking for a recharter until after the
election of 1892. Jackson then had n
majority OF the house in name, but
istration and the bank could count on
a sufficient number of Democrats in
the house to win. 1t was feared that
the next election might change the
complexion of one or the other houses
of congress. Biddle doubted the wis
dom of bringing the issue before the
people, as he felt he could depend
upon the power of money to influence
senators and representatives already
elected. But Clay was imperious for
once and refused to compromise. He
insisted that the bank bill must be
introduced.
The bill to extend the charter passed
the senate by 2S to 20 and the house
by 109 to 76. All Jackson's power and
threats were unavailing, even in tho
Democratic house, to defeat the meas
ure. But his anger had been aroused
and he addressed himself to the work
of exterminating the bank. He vetoed
the bill.
The issue went to the country. Clay
was the candidate for president, sup
ported by the bank, the money pow-
err" such leaders as Webster, Calhoun,
John Quincy Adams, Hugh Lawson
White and all the forces of conserva-
tism and aristocracy. The campaign
was bitter. The Jackson men wor-
SHIPPED their hero and would have no
other. They swore they would re-
eject "Old Hickory" in spite of "Old
Nlck's money" and "Clay's rags" as
the bank notes were called Clay had
not reckoned the strength of his op-
ponent, and he was defeated. Jackson
was given another lease of power and
he swore "by the eternal" to destroy
the Bank of the United States root and
branch, forever. Here opened his
great battle with the senate.
TomorrOw--The American Congresst
V-Jackson VS.. the Senate