Omaha daily bee., 1909-11-27
Some Things You Want to Know
The American oOngress-The Fight On the Bank.

The first great struggle between the con-
gress and a president Of the United States
was upon the question OF re-chartering
the second bank Of the United States.
Henry Clay leading the forces OF the bank
and congress against Andrew Jackson,
only to suffer complete and total defeat.
Since the victory OF Jackson and the de.
struction OF the congressional leadership
as Il then existed the American people
have accustomed themselves TO look to the
White House for reforms and to hold the
White House responsible for errors in gov
ernment Under the constitution this might
have become a purely parliamentary gov
eminent, but the domination Of Jackson
forever changed the current OF American
politics and vested leadership and RESPONSE
bllity in the president.
Andrew Jackson may not have been tho
greatest Of the presidents, but his power
and his policies were more enduring thar
those Of any other American chief magis.
trste. Washington in Impartial dignity at
tempted to prevent partisan politics. He
had not been out Of office six months until
his notions Of the proper conduct Of the
government were flouted His dictum
against the third term and his warnings
against e~ntangling alliances with foreign
nations have endured, but his system OF
domestic politics persisted before he died.
The bullet which killed Lincoln killed his
policies, and his successor, Andrew John
son., Is even now by many held in con-
tumely for the offense Of having attempted
to continue Lincolp's work along lines
Lincoln so plainly marked out.
But Jackson's policies have not died
They are the essence Of the rule and
u.aAH-- - -. --TGNgar N.Ia4r c.
ator Aldrich, proposing a Contra bank
admits that what he has to fight is not
opposition to the bank on its merits, but
the ghost Of Old Hickory" The doctrine
declaring that ITO the victors belong the
spoils" is the accepted creed of every
party, and the federal o~fficeholders today
constitute the most powerful p~olitica! ma.
chine IN existence. Jackson not only
designated his successor, Van Buren,, but
in his old age nominated and elected
James K. Polk. James Parton, the admir-
ing, but not sympathetic bioErapher OF
Jackson, says of him: Not only had he
no such word as fall but no belief, not
the slightest, that he could fail in anything
seriously undertaken by him. And he
never did"
The congress refused. in 1911, to recharter
the First bank Of the United States, an
institution of which Hamilton was the
father. During the second war with Eng
land President Madison and his Secretary
Of the Treasury George M. Dallas Of Penn.
s~ylvania attempted to secure a charter foI
a new bank. Congress refused during the
war, but when peace was restored a bank
wal chartered and organized on a plan sug-
gested by Dallas. Specie payments had
been suspended in 1914 and the financial
condition Of the country was lamentable.
The state banks had proved wholly in
capable OF sustaining the burden OF bust
ness and had even more signally failed to
live up to the responsibility of financing
the federal government. The bill charter
ing the second bank was signed by Presi-
dent Madison on April 10, 1916, and the
bank opened for business In Philadelphia
on January II, 1917. Instead Of addressing
Itself to the task of relieving the country
Of it's burden of bankruptcy, the president
and officers Of the bank plunged into a
carnival of speculation and high finance
which would make modern Wall street
blush with shame.
The charter was limited to twenty years,
and would expire by Limitation in 1896.
The bank had a capital Of 1856, 900, 900, one
fifth Of which was to be subscribed by the
OHlItu SUITES Inc IOuI-LlltnS was TO be
taken by individuals or corporations, their
subscriptions to be payable one-fourth in
coin and three-fourths in the funded debt
OF the United States. This provision was
designed to strengthen the credit of the
government by creating a use for It's GER
t~ificates of debt, just as the present ma
uonal banking system keeps up the price
Of government bonds far beyond their in
vestment value. The bank was to be gov
erned by twenty-five directors, five of
whom were to be appointed by the presi-
dent OF the United States. The govern
ment funds were to pc deposited in the
bank, unless the secretary Of the treasury
should otherwise direct-a fateful proviso.
The banks notes were to be receivable in
all payments to the United States. For
this charter the bank paid the government
a bonus of S1,6O0,O00.
William Jones was the first president.
The stock OF the bank was disposed of to
favorites, and the requirements OF coin
payments were not adhered to. Prospee-
tive purchasers OF stock were loaned money
upon the security OF the stock to be pur-
chased, and from this loan they got money
enough to buy the stock. It was not nee
essary to have a cent to deal In the bank
stock or to acquire large holdings OF it.