Omaha daily bee., 1909-11-27

The bank permitted a note 20 be paid by
the note Of the next purchaser. II the
stock rose in value. as II did. a man sold
his stock, for which he had paid nothing,
az an advanced price, the new buyer paid
for It with a note and the first purchaser
paid his note with the new note and peck
eted the difference in price. In addition to
this sharp p~ractleR the bank was very lib
eral in its discounts to favored persons.
The Baltimore branch was the worst Of
fender, and it managed to lose S,OOO,OOO In
a few years. Congress investigated the
bank in 1919 and found conditions so bad
that a change was demanded, Langdon
Cheves, who as speaker Of the house had
cast the deciding vote which defeated the
re-charter Of the first bank. was made
president. He cleaned house and put the
bank on a firm footing. Prosperity re-
turned to the country, and when Nicholas
Blddle became president Of the bank in
1923 all opposition to it had disappeared
and the bank was fulfilling all require
ments Of its charter save one. 1t evaded
the intent Of the law requiring It to fur
nish a staple and uniform currency by
making its notes redeemable only at the
branch bank which issued them. This re-
quired shipments Of money from one part
of the country to another, and permitted
the bank to make large profits by the sale
Of its drafts. This was one Of the prln-
cipal arguments used by jackson in his
fight upon the institution.
Under Biddle's management the bank
grew to great strength, and was honestly
administered for the benefit Of the whole
country. At the beginning Of Jackson's
first administration in 1923 it was an insti-
tuition Of commanding Importance. 1t had
not been mentioned in the political cam
Dalgns Of 1924 and 1898, and was generally
accepted as a permanent settlement of the
national financial question. 1t had a capt.
tai of $35, 600, 600, the public money on de-
post was about S7,OOO,OOO, its private de-
posits about as much, its circulation over
$l2, 600 its discounts more than $40, 900, 900
a year and It's profits $4,000 900 annually.
1t had twenty-five branch banks and a
marble banking house at the head office in
Philadelphia. It's notes were as good as
gold all over the world, and 1t received
and dlsbursed all the revenue of the ma
tlon. Considering the fact that the United
States then had a total population of only
l2,0 900 people the bank was a mighty in
stitution.
Jackson, in his first message to congress,
called into question the constitutionality Of
the banks charter, suggesting that tho
matter be considered by congress, as the
charter would expire within seven years.
He suggested that the national bank ought
to be organized on the basis of the credit
Of the nation, thereby making it a purely
governmental bank and avoiding the con-
0titutional question. But at that time
Jackson had no idea of destroying the
bank.
Isaac Hill, a member OF Jackson's
Kitchen cabinet" attempted to get the
scalp of Jeremiah Mason, the manager Of
the branch bank at Portsmouth, N. II.
Eddie and the bank resisted, and thus
placed themselves In opposition to Jack
son. This incident has been made the
basis of Jackson's resolve to destroy the
Institution, but there is reason to believe
that IL has been too much emphasized. Mr..
Biddle and Mr.. Clay despised Andrew
Jackson. They looked upon Jackson as an
uncouth man of the people, unfit to be
president and even more unfit for decent
society. They sneered and scoffed at him:
they underestimate his power and, strange
to say, they even delighted in making him
furious. It was Biddle's aristocratic con-
tempt for Jackson, and Clay's over-esti-
mate of his own strength, which DESTROYED
Wv 3NNSAN DNAAN ~ NAS AAAN oNdkN5t ult9
as much as 1t was Jackson's 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 eection Of
1882. Jackson then had a majority Of the
house in name, but the senate was on
posed to the administration and the bank
could count on a sufficient number of
democrats in the house to win. It was
feared that the next election might change
the complication of one or the other houses
of congress. Biddle doubted the wisdom
Of bringing the issue before the people. as
he felt he could depend upon the power
of money to influence senators and repre-
sentatives already elected. But Clay was
imperious, for once, and refused 10 COM
promise. lie 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 100
to 70. All Jackson's power and threats
were unavailing, even in the democratic
house, to defeat the measure. But his anger
had been aroused and he addressed him
self TO the work of exterminating the
bank. He veoted the bill.
The issue went to the country. CLAW was
the candidate for president, supported by
the bank, the money power" such lead
ers as Webster, Calhoun, John Quincy
Adams. Hugh Lawson White and all the
forces Of conservatism and aristocracy.
The campaign was bitter. The Jackson
men worshiped their hero and would have
no other. They swore they would re-elect
Old Hickory in spite of "Old Nick's
money and "Clay's Rags" as the bank
notes were called. Clay had not reckoned
the strength Of his opponent, 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.
BY Frederick j. Haskin.