New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-15

The controversy between the Riggs
/ National Bank OF Washington and the
Secretary of the Treasury and Con-
! troller Of the Currency, who are appar-
emily TO be backed by the full force OF
the administration. recalls to the stu
dent Of banking history the memora-
/ bic and disastrous contest between
/ President Andrew Jackson and the sec
ond Bank of the United States.
The Bank Of the United States was
/ directly chartered by Congress and was
| in a measure a government institution
while the Riggs National Bank is only
one of 1888 institutions chartered
under the national bank act, but analo-
eies between the administrations
methods in attacks on both banks are
too close and the similsrities in the
General situation too great to be com
/ forting to the banker who is familiar
with the history of the panic Of 1881
The trouble between Andrew jack
son and the Bank Of the United States
is generally believed 10 have had its
inception in the refusal OF Nicholas
Riddle. president of the Bank of the
United States, TO remove from the
presidency Of the branch Of the bank
at Portsmouth, y. H., jeremiah Mason,
a friend Of Daniel Webster, the great
political opponent Of Andrew Jackson.
The political origin of the Riggs Bank
trouble is not yet as generally recog-
nized but the opposition Of Frank A.
Vanderlip, president OF the National
CITY Bank of New York and a director
Of the Riggs Bank, TO the federal re-
serve act is known to have given serl-
Gus offence TO Secretary McAdoo, and,
inferentially, 10 the President. Both
Mr.. McAdoo and John SHELTON Will
Jams, Controller of the Currency, are
ex oficio members Of the Fedora! Re
/ serve Board. The National City Bank
end the Riggs National Bank are very
/ closely allied, and il does not require
/ very great powers OF penetration to
/ see that the battle is really between
| the administration and the National
/ City Bank, the largest and most infu-
| entail banking institution IN the
United States.
Removal Of Deposits.
The closest analogy 50 far in evil
dence between the Jackson Blddle war
and the Riggs McAdoo Williams "af-
fair" lies in the removal Of govern
ment deposits from the Riggs Bank last
, fall. II was the removal, by order Of
Andrew Jackson. Of the government de-
nosits from the Bank Of the United
states that broke that bank and Nicho-
las Biddle's heart.
Jackson's attack OH the Bank of the
United States began officially in Decem-
Der, 1929, when the President said in
! his message TO Congress, Both the
constitutionality and eXpediency of the
law creating this bank are we'll ques
/ toned by large portion of our fellow
citizens. and it must be admitted by all
that it has failed in the great end OF
establishing a uniform and sound cur
Ioncy."
The Presidents message caused great
excitement. but the excitement died
DOWN and little more WAS heard Of the
matter until 1882. The charter of the
Bank of the United States was 20 ex-
pire in 1885
Congress passed a bill TO recharter
II on July 10, 1892 A Presidential veto
had been practically unknown down to
that time.
Animosity between friends and enc
mics of the bank grew fast and Presi-
dent jackson determined TO remove
I the Federal deposits from the Bank OF
/ the United States. Circulars were sent
20 various state banks in August, 1888,
asking II they would receive the gov
crnmcnt deposits.
Jackson Gives Reasons.
f President Jackson read TO the
/ Cabinet on September Is, 1888, his
reasons for the removal of the deposits
I from the Bank of the United States.
He declared the bank had entered
politics and had used its vast influence
/ in promulgating certain principles
which were not those held by the
government; that in sixteen months
ended no. long before the veto the
bank had increased its loans over
S2S. 600. 900 with the intention OF bring
ing a large number of persons under
its influence. and that a considerable
part Of this sum had been appropriated
TO subsidize the press.
DEPOSITS were by law under CON
troll Of the Secretary of the Treas
ury Louis NcLane, Of Maryland, was
then secretary lie was reluctant 10
take so startling q step as the removal
of the deposits from the bank, and
President Jackson transferred him TO
/ the State Department and made Will
D lam J. Duane, of Philadelphia. Secre-
/ tary of the Treasury. Mr.. Duane re-
fused to remove the deposits and
/ President Jackson removed Mr.. Duane.
4 He then appointed as Secretary Roger
Il Tsnev. who was more amenAblc 10
Presidential direction. and October !.
1888. WAS named - ,hc day for the
withdrawal. The deposits, amounting
n about $4,000. 600. were withdrawn,
and redcposited IN state banks.
Removal Of the deposits was FOL.
lowed by general curtsilment OF
l,ans By the Bank Of the United
States, causing serious distress. The
City Council Of Philadelphia and other
bodies passed resolutions asking re-