Evening star., 1951-04-16
BY Edward Boykin

By Edward boykin
W HEN Senate subcommittee began
w probing the alleged misuse Of in
fiuence by Government officials in ma
nipulating loans from the Reconstruc-
ton Finance Corporation, the shade OF
Andrew Jackson doubtless looked on
approyingly.
JackSons blazing war on the Bank Gf
the United States. in 1882, had much in
common with today's inquiry into the
RFC. Then, as now, there were charges
of misuse of influence in high places.
Paralleling the RFC quiz. there was
House investigation into the Bank of the
United States, which was more or less
the RFC of that day. That inquiry
disclosed no mink coats. But 1t lit
up the political sky with fat loans
to members of Congress and others in
the seats of the mighty, on unsecured
notes. without interest.
In 1880 the banks loans totaled
$192, 1000 to So congressman; in 1881,
1922 900 to So: in 1882. $478,00O to A;
in 1888, $374.000 to 58. Senator Daniel
Webster dipped in for $4,000. besides
handsome retainer. Henry Clay was
on the payroll for years. The chairman
of the House Ways and Means Com
mittee enjoyed an accommodation sof
100000. John Calhoun's son-in-law
got $4,000. The chief clerk Of the
Treasury had yearly gratuity. And
SO on. The bank often advanced Con-
greSsmen and other officials their en-
tire years salary at no interest. The
bank had long list of most-favored
Government officers. editors, journalists
and even college president.
The RFC is fully Government nt-owned.
But the Bank of the United States was
a Semi-governmental institution. 1t had
27 branches. The Government owned
one-fifth Of the capital stock Of $35
million. The bank was the sole deposi-
tary of Government funds, on which 1t
paid no interest. The Governments
average monthly balance was 81 mil
lion. big figure for that time, making
the bank the Nations leading financial
institution. The bank enjoyed many
special privileges not available to other
banks. 1t was really a privileged
corporation" with a monopoly of the
Nations banking business.
Presiding over the bank at Phila-
delphia was suave. alert Nicholas Biddle,
who had q fair for literary expression
and propaganda. Biddle actually con-
trolled credit of the United States. BY
increasing or diminishing loans. he
could make money abundant or scarce.
business good or bad.
Next to jackson, in 1882, Biddle was
the most powerful man in America. He
once boasted, I'm half an hour can
remove all the constitutional scruples in
the District of Columbia" by distribut-
ing "half dozen presidencies, dozen
cashierships. so clerkships and 100 di-
rectorships-to worthy friends who have
no character and no money"
The bank of the United States.
chartered in 1916, had seven years to
run when jackson became President. In
his first message to Congress. in 1929, he
challenged its constitutionality. Old
Hickory sincerely believed the bank was
corrupt, or at least corrupting to Gov
ernment, though certain Of his charges
were fantastic. jackson wanted Gov
ernment-owned bank of deposit, an arm
of the Treasury. with no lending power.
Up to 1882, he contented himself by
taking potshots at the bank in his annual
messages.
Came 1882, an election year. Henry
Clay, the banks best friend on Capitol
Hill, now assured of the Whig nomina-
tion, decided that rechartering the bank
was an issue on which Old Hickory could
actually hang himself. Clay was certain
the votes were at hand to pass such
bill. If jackson signed the bill. he would
reverse his previous stand and ALLEVIATE
many supporters; If he vetoed 1t, he
would lose support Of Pennsylvania,
jackson stronghold, where the bank was
powerful and popular. To the willy Clay
and to Daniel Webster-the scheme
looked good. Rushing to Philadelphia,
Clay persuaded Biddle that it was now
or never to get the bank charter renewed
and to put good friend In the White
House at the same time.
In January. 1882, while jackson was
having an old duelling bullet extracted
from his shoulder, Clay introduced his
rechartering bill. The war was on
Jackson romped into battle. Biddle
moved to Washington to help force the
bill through Congress.
On July 4, 1882, the rechartering bill,
having passed both houses, reached
Jackson. He returned it with flaming
veto, perhaps the most powerful ever
written by President. jackson summed
up his opposition In one word: Mo-
nopoly. Said he: 1T Is to be regretted
that the rich and powerful too often
bend the acts Of government to their
selfish purposes. =. We cannot permit
the prostitution of our Government to
the advancement of the few at the
expense Of the many"
Though they could not override it
Clay and Biddle were jubilant about
the veto. They thought its wording
would cost jackson the election. Said
Biddle, "It has all the fury Of chained
panther. biting the bars of his cage.
It is really manifesto of anarchy"
The bank gleefully distributed 10000
copies Of the message. But, to Biddle's
amazement, Jackson became overnight
the champion of the downtrodden
against the forces of m0noply. The
masses believed him when he called the
bank monster-and they reelected