Thirty Years' View (Vol. I of 2)

"It being thus established, by unquestionable proof, that the Bank of the United States was converted into a permanent electioneering engine, it appeared to me that the path of duty which the Executive department of the government ought to pursue, was not doubtful. As by the terms of the bank charter, no officer but the Secretary of the Treasury could remove the deposits, it seemed to me that this authority ought to be at once exerted to deprive that great corporation of the support and countenance of the government in such a use of its funds, and such an exertion of its power. In this point of the case, the question is distinctly presented, whether the people of the United States are to govern through representatives chosen by their unbiassed suffrages, or whether the money and power of a great corporation are to be secretly exerted to influence their judgment, and control their decisions. It must now be determined whether the bank is to have its candidates for all offices in the country, from the highest to the lowest, or whether candidates on both sides of political questions shall be brought forward as heretofore, and supported by the usual means.

"At this time, the efforts of the bank to control public opinion, through the distresses of some and the fears of others, are equally apparent, and, if possible, more objectionable. By a curtailment of its accommodations, more rapid than any emergency requires, and even while it retains specie to an almost unprecedented amount in its vaults, it is attempting to produce great embarrassment in one portion of the community, while, through presses known to have been sustained by its money, it attempts, by unfounded alarms, to create a panic in all.

"These are the means by which it seems to expect that it can force a restoration of the deposits, and, as a necessary consequence, extort from Congress a renewal of its charter. I am happy to know that, through the good sense of our people, the effort to get up a panic has hitherto failed, and that, through the increased accommodations which the State banks have been enabled to afford, no public distress has followed the exertions of the bank; and it cannot be doubted that the exercise of its power, and the expenditure of its money, as well as its efforts to spread groundless alarm, will be met and rebuked as they deserve. In my own sphere of duty, I should feel myself called on, by the facts disclosed, to order a scire facias against the bank, with a view to put an end to the chartered rights it has so palpably violated, were it not that the charter itself will expire as soon as a decision would probably be obtained from the court of last resort.

"I called the attention of Congress to this subject in my last annual message, and informed them that such measures as were within the reach of the Secretary of the Treasury, had been taken to enable him to judge whether the public deposits in the Bank of the United States were entirely safe; but that as his single powers might be inadequate to the object, I recommended the subject to Congress, as worthy of their serious investigation: declaring it as my opinion that an inquiry into the transactions of that institution, embracing the branches as well as the principal bank, was called for by the credit which was given throughout the country to many serious charges impeaching their character, and which, if true, might justly excite the apprehension that they were no longer a safe depository for the public money. The extent to which the examination, thus recommended, was gone into, is spread upon your journals, and is too well known to require to be stated. Such as was made resulted in a report from a majority of the Committee of Ways and Means, touching certain specified points only, concluding with a resolution that the government deposits might safely be continued in the Bank of the United States. This resolution was adopted at the close of the session, by the vote of a majority of the House of Representatives."

The message concluded with renewing the recommendation, which the President had annually made since his first election, in favor of so amending the constitution in the article of the presidential and vice-presidential elections, as to give the choice of the two first officers of the government to a direct vote of the people, and that "every intermediate agency in the election of those officers should be removed." This recommendation, like all which preceded it, remained without practical results. For ten years committees had reported amendments, and members had supported them, but without obtaining in Congress the requisite two thirds to refer the proposition of amendment to the vote of the people. Three causes combined always to prevent the concurrence of that majority: 1. The conservative spirit of many, who are unwilling, under any circumstances, to touch an existing institution. 2. The enemies of popular elections, who deem it unsafe to lodge the high power of the presidential election, directly in the hands of the people. 3. The intriguers, who wish to manage these elections for their own benefit, and have no means of doing it except through the agency of intermediate bodies. The most potent of these agencies, and the one in fact which controls all the others, is the one of latest and most spontaneous growth, called "conventions" – originally adopted to supersede the caucus system of nominations, but which retains all the evils of that system, and others peculiar to itself. They are still attended by members of Congress, and with less responsibility to their constituents than when acting in a Congress caucus. A large proportion of the delegates are either self-appointed or so intriguingly appointed, and by such small numbers, as to constitute a burlesque upon popular representation. Delegates even transfer their functions, and make proxies – a prerogative only allowed to peers of the realm, in England, in their parliamentary voting, because they are legislators in their own right, and represent, each one, himself, as his own constituent body, and owing responsibility to no one. They meet in taverns, the delegates of some of the large States, attended by one or two thousand backers, supplied with money, and making all the public appliances of feasting and speaking, to conciliate or control votes, which ample means and determined zeal can supply, in a case in which a personal benefit is expected. The minority rules, that is to say, baffles the majority until it yields, and consents to a "compromise," accepting for that purpose the person whom the minority has held in reserve for that purpose; and this minority of one third, which governs two thirds, is itself usually governed by a few managers. And to complete the exclusion of the people from all efficient control, in the selection of a presidential candidate, an interlocutory committee is generally appointed out of its members to act from one convention to another – during the whole interval of four years between their periodical assemblages – to guide and conduct the public mind, in the different States, to the support of the person on whom they have secretly agreed. After the nomination is over, and the election effected, the managers in these nominations openly repair to the new President, if they have been successful, and demand rewards for their labor, in the shape of offices for themselves and connections. This is the way that presidential elections are now made in the United States; for, a party nomination is an election, if the party is strong enough to make it; and, if one is not, the other is; for, both parties act alike, and thus the mass of the people have no more part in selecting the person who is to be their President than the subjects of hereditary monarchs have in begetting the child who is to rule over them. To such a point is the greatest of our elections now sunk by the arts of "intermediate agencies;" and it may be safely assumed, that the history of free elective governments affords no instance of such an abandonment, on the part of legal voters, of their great constitutional privileges, and quiet sinking down of the millions to the automaton performance of delivering their votes as the few have directed.

CHAPTER XCII.

REMOVAL OF THE DEPOSITS FROM THE BANK OF THE UNITED STATES

The fact of this removal was communicated to Congress, in the annual message of the President; the reasons for it, and the mode of doing it, were reserved for a separate communication; and especially a report from the Secretary of the Treasury, to whom belonged the absolute right of the removal, without assignment of any reasons except to Congress, after the act was done. The order for the removal, as it was called – for it was only an order to the collectors of revenue to cease making their deposits in that bank, leaving the amount actually in it, to be drawn out of intervals, and in different sums, according to the course at the government disbursements – was issued the 22d of September, and signed by Roger B. Taney, Esq., the new Secretary of the Treasury, appointed in place of Mr. Wm. J. Duane, who, refusing to make the removal, upon the request of the President, was himself removed. This measure (the ceasing to deposit the public moneys with the Bank of the United States) was the President's own measure, conceived by him, carried out by him, defended by him, and its fate dependent upon him. He had coadjutors in every part of the business, but the measure was his own; for this heroic civil measure, like a heroic military resolve, had to be the offspring of one great mind – self-acting and poised – seeing its way through all difficulties and dangers; and discerning ultimate triumph over all obstacles in the determination to conquer them, or to perish. Councils are good for safety, not for heroism – good for escapes from perils, and for retreats, but for action, and especially high and daring action, but one mind is wanted. The removal of the deposits was an act of that kind – high and daring, and requiring as much nerve as any enterprise of arms, in which the President had ever been engaged. His military exploits had been of his own conception; his great civil acts were to be the same: more impeded than promoted by councils. And thus it was in this case. The majority of his cabinet was against him. His Secretary of the Treasury refused to execute his will. A few only – a fraction of the cabinet and some friends – concurred heartily in the act: Mr. Taney, attorney general, Mr. Kendall, Mr. Francis P. Blair, editor of the Globe; and some few others.

He took his measures carefully and deliberately, and with due regard to keeping himself demonstrably, as well as actually right. Observation had only confirmed his opinion, communicated to the previous Congress, of the misconduct of the institution, and the insecurity of the public moneys in it: and the almost unanimous vote of the House of Representatives to the contrary, made no impression upon his strong conviction. Denied a legislative examination into its affairs, he determined upon an executive one, through inquiries put to the government directors, and the researches into the state of the books, which the Secretary of the Treasury had a right to make. Four of those directors, namely, Messrs. Henry D. Gilpin, John T. Sullivan, Peter Wager, and Hugh McEldery, made two reports to the President, according to the duty assigned them, in which they showed great misconduct in its management, and a great perversion of its funds to undue and political purposes. Some extracts from these reports will show the nature of this report, the names of persons to whom money was paid being omitted, as the only object, in making the extracts, is to show the conduct of the bank, and not to disturb or affect any individuals.

"On the 30th November, 1830, it is stated on the minutes, that 'the president submitted to the board a copy of an article on banks and currency, just published in the American Quarterly Review of this city, containing a favorable notice of this institution, and suggested the expediency of making the views of the author more extensively known to the public than they can be by means of the subscription list.' Whereupon, it was, on motion, 'Resolved, That the president be authorized to take such measures, in regard to the circulation of the contents of the said article, either in whole or in part, as he may deem most for the interests of the bank.' On the 11th March, 1831, it again appears by the minutes that 'the president stated to the board, that, in consequence of the general desire expressed by the directors, at one of their meetings of the last year, subsequent to the adjournment of Congress, and a verbal understanding with the board, measures had been taken by him, in the course of that year, for furnishing numerous copies of the reports of General Smith and Mr. McDuffie on the subject of this bank, and for widely disseminating their contents through the United States; and that he has since, by virtue of the authority given him by a resolution of this board, on the 30th day of November last, caused a large edition of Mr. Gallatin's essay on banks and currency to be published and circulated, in like manner, at the expense of the bank. He suggested, at the same time, the propriety and expediency of extending still more widely a knowledge of the concerns of this institution, by means of the republication of other valuable articles, which had issued from the daily and periodical press.' Whereupon, it was, on motion, 'Resolved, That the president is hereby authorized to cause to be prepared and circulated, such documents and papers as may communicate to the people information, in regard to the nature and operations of the bank.'

"In pursuance, it is presumed, of these resolutions, the item of stationary and printing was increased, during the first half year of 1831, to the enormous sum of $29,979 92, exceeding that of the previous half year by $23,000, and exceeding the semi-annual expenditure of 1829, upwards of $26,000. The expense account itself, as made up in the book which was submitted to us, contained very little information relative to the particulars of this expenditure, and we are obliged, in order to obtain them, to resort to an inspection of the vouchers. Among other sums, was one of $7,801, stated to have been paid on orders of the president, under the resolution of 11th March, 1831, and the orders themselves were the only vouchers of the expenditure which we found on file. Some of the orders, to the amount of about $1,800, stated that the expenditure was for distributing General Smith's and Mr. McDuffie's reports, and Mr. Gallatin's pamphlet; but the rest stated generally that it was made under the resolution of 11th of March, 1831. There were also numerous bills and receipts for expenditures to individuals: $1,300 for distributing Mr. Gallatin's pamphlet; $1,675 75 for 5,000 copies of General Smith's and Mr. McDuffie's reports, &c.; $440 for 11,000 extra papers; of the American Sentinel, $125 74 for printing, folding, packing, and postage on 3,000 extras; $1,830 27 for upwards of 50,000 copies of the National Gazette, and supplements containing addresses to members of State legislatures, reviews of Mr. Benton's speech, abstracts of Mr. Gallatin's article from the American Quarterly Review, and editorial article on the project of a Treasury Bank; $1,447 75 for 25,000 copies of the reports of Mr. McDuffie and General Smith, and for 25,000 copies of the address to members of the State legislatures, agreeably to order; $2,850 for 10,000 copies of 'Gallatin on Banking,' and 2,000 copies of Professor Tucker's article.

"During the second half year of 1831, the item of stationery and printing was $13,224 87, of which $5,010 were paid on orders of the president, and stated generally to be under the resolution of 11th March, 1831, and other sums were paid to individuals, as in the previous account, for printing and distributing documents.

"During the first half year of 1832, the item of stationery and printing was $12,134 16, of which $2,150 was stated to have been paid on orders of the president, under the resolution of 11th March, 1831. There are also various individual payments, of which we noticed $106 38 for one thousand copies of the review of Mr. Benton's speech; $200 for one thousand copies of the Saturday Courier; $1,176 for twenty thousand copies of a pamphlet concerning the bank, and six thousand copies of the minority report relative to the bank; $1,800 for three hundred copies of Clarke & Hall's bank book. During the last half year of 1832, the item of stationery and printing rose to $26,543 72, of which $6,350 are stated to have been paid on orders of the president, under the resolution of 11th March, 1831. Among the specified charges we observe $821 78 for printing a review of the veto; $1,371 04 for four thousand copies of Mr. Ewing's speech, bank documents, and review of the veto; $4,106 13 for sixty-three thousand copies of Mr. Webster's speech, Mr. Adams's and Mr. McDuffie's reports, and the majority and minority reports; $295 for fourteen thousand extras of The Protector, containing bank documents; $2,583 50 for printing and distributing reports, Mr. Webster's speech, &c. $150 12 for printing the speeches of Messrs. Clay, Ewing, and Smith, and Mr. Adams's report; $1,512 75 to Mr. Clark, for printing Mr. Webster's speech and articles on the veto, and $2,422 65 for fifty-two thousand five hundred copies of Mr. Webster's speech. There is also a charge of $4,040 paid on orders of the president, stating that it is for expenses in measures for protecting the bank against a run on the Western branches.

"During the first half year of 1833, the item of stationery and printing was $9,093 59, of which $2,600 are stated to have been paid on orders of the president, under the resolution of 11th March, 1831. There is also a charge of $800 for printing the report of the exchange committee."

These various items, amounting to about $80,000, all explain themselves by their names and dates – every name of an item referring to a political purpose, and every date corresponding with the impending questions of the recharter and the presidential election; and all charged to the expense account of the bank – a head of account limited, by the nature of the institution, so far as printing was concerned, to the printing necessary for the conducting of its own business; yet in the whole sum, making the total of $80,000, there is not an item of that kind included. To expose, or correct these abuses, the government directors submitted the following resolution to the board:

"Whereas, it appears by the expense account of the bank for the years 1831 and 1832, that upwards of $80,000 were expended and charged under the head of stationery and printing during that period; that a large proportion of this sum was paid to the proprietors of newspapers and periodical journals, and for the printing, distribution, and postage of immense numbers of pamphlets and newspapers; and that about $20,000 were expended under the resolutions of 30th November, 1830, and 11th March, 1831, without any account of the manner in which, or the persons to whom, they were disbursed: and whereas it is expedient and proper that the particulars of this expenditure, so large and unusual, which can now be ascertained only by the examination of numerous bills and receipts, should be so stated as to be readily submitted to, and examined by, the board of directors and the stockholders: Therefore, Resolved, That the cashier furnish to the board, at as early a day as possible, a full and particular statement of all these expenditures, designating the sums of money paid to each person, the quantity and names of the documents furnished by him, and his charges for the distribution and postage of the same; together with as full a statement as may be of the expenditures under the resolutions of 30th November, 1830, and 11th March, 1831. That he ascertain whether expenditures of the same character have been made at any of the offices, and if so, procure similar statements thereof, with the authority on which they were made. That the said resolutions be rescinded, and no further expenditures made under the same."

This resolution was rejected by the board, and in place of it another was adopted, declaring perfect confidence in the president of the bank, and directing him to continue his expenditures under the two resolves of November and March according to his discretion; – thus continuing to him the power of irresponsible expenditure, both in amount and object, to any extent that he pleased. The reports also showed that the government directors were treated with the indignity of being virtually excluded, both from the transactions of the bank, and the knowledge of them; and that the charter was violated to effect these outrages. As an instance, this is given: the exchange committee was in itself, and even confined to its proper duties, that of buying and selling exchange, was a very important one, having the application of an immense amount of the funds of the bank. While confined to its proper duties, it was changed monthly, and the directors served upon it by turns; so that by the process of rotation and speedy renewal, every member of the directory was kept well informed of the transactions of this committee, and had their due share in all its great operations. But at this time – (time of the renewed charter and the presidential election) – both the duties of the committee, and its mode of appointment were altered; discounting of notes was permitted to it, and the appointment of its members was invested in Mr. Biddle; and no government director was henceforth put upon it. Thus, a few directors made the loans in the committee's room, which by the charter could only be made by seven directors at the board; and the government directors, far from having any voice in these exchange loans, were ignorant of them until afterwards found on the books. It was in this exchange committee that most of the loans to members of Congress were made, and under whose operations the greatest losses were eventually incurred. The report of the four directors also showed other great misconduct on the part of the bank, one of which was to nearly double its discounts at the approaching termination of the charter, running them up in less than a year and a half from about forty-two and a half to about seventy and a half millions of dollars. General Jackson was not the man to tolerate these illegalities, corruptions and indignities. He, therefore, determined on ceasing to use the institution any longer as a place of deposit for the public moneys; and accordingly communicated his intention to the cabinet, all of whom had been requested to assist him in his deliberations on the subject. The major part of them dissented from his design; whereupon he assembled them the 22nd of September, and read to them a paper, of which the following are the more essential parts:

"Having carefully and anxiously considered all the facts and arguments which have been submitted to him, relative to a removal of the public deposits from the Bank of the United States, the President deems it his duty to communicate in this manner to his cabinet the final conclusions of his own mind, and the reasons on which they are founded, in order to put them in durable form, and to prevent misconceptions.

"The President's convictions of the dangerous tendencies of the Bank of the United States, since signally illustrated by its own acts, were so overpowering when he entered on the duties of chief magistrate, that he felt it his duty, notwithstanding the objections of the friends by whom he was surrounded, to avail himself of the first occasion to call the attention of Congress and the people to the question of its recharter. The opinions expressed in his annual message of December, 1829, were reiterated in those of December, 1830 and 1831, and in that of 1830, he threw out for consideration some suggestions in relation to a substitute. At the session of 1831-'32 an act was passed by a majority of both Houses of Congress rechartering the present bank, upon which the President felt it his duty to put his constitutional veto. In his message, returning that act, he repeated and enlarged upon the principles and views briefly asserted in his annual messages, declaring the bank to be, in his opinion, both inexpedient and unconstitutional, and announcing to his countrymen, very unequivocally, his firm determination never to sanction, by his approval, the continuance of that institution or the establishment of any other upon similar principles.