Skip to comments.What Andrew Jackson did.
Posted on 09/24/2008 7:51:47 AM PDT by crz
Opposition to the National Bank Main article: Second Bank of the United States
Democratic cartoon shows Jackson fighting the monster Bank. "The Bank," Jackson told Martin Van Buren, "is trying to kill me, but I will kill it!"The Second Bank of the United States was authorized for a twenty year period during James Madison's tenure in 1816. As President, Jackson worked to rescind the bank's federal charter. In Jackson's veto message (written by George Bancroft), the bank needed to be abolished because:
It concentrated the nation's financial strength in a single institution. It exposed the government to control by foreign interests. It served mainly to make the rich richer. It exercised too much control over members of Congress. It favored northeastern states over southern and western states. Following Jefferson, Jackson supported an "agricultural republic" and felt the Bank improved the fortunes of an "elite circle" of commercial and industrial entrepreneurs at the expense of farmers and laborers. After a titanic struggle, Jackson succeeded in destroying the Bank by vetoing its 1832 re-charter by Congress and by withdrawing U.S. funds in 1833.
1833 Democratic cartoon shows Jackson destroying the devil's BankThe bank's money-lending functions were taken over by the legions of local and state banks that sprang up. This fed an expansion of credit and speculation. At first, as Jackson withdrew money from the Bank to invest it in other banks, land sales, canal construction, cotton production, and manufacturing boomed. However, due to the practice of banks issuing paper banknotes that were not backed by gold or silver reserves, there was soon rapid inflation and mounting state debts. Then, in 1836, Jackson issued the Specie Circular, which required buyers of government lands to pay in "specie" (gold or silver coins). The result was a great demand for specie, which many banks did not have enough of to exchange for their notes. These banks collapsed. --------------------------------------------------------
There was a periode of depression afterwards because the worthless money that was circulated had to be purged from the economy...must remember that things happened slowly in those days. After the downturn, it was the biggest economic explosion in the history of this country as Jackson PAID OFF the national debt caused by the national bank and its funny money.
All in all..does anyone see the similarity in the list to toady? The bankers and lawyer are truly a "brood of vipers" and should be treated as such.
It is true the BUS was big---about 10 times bigger than the next biggest bank. But it was not "government." It was 4/5 owned by the private sector. And it had to compete with hundreds of smaller private banks, each with the ability to print money. So there was COMPETITION in money, and th BUS's notes were only as good as "gold."
I have no problem with Jackson killing the bank except that the U.S. government ought to get interest for its money---which it doesn't get in a purely government institution.
In fact, I showed in my book "Banking in the American South from the Age of Jackson to Reconstruction," and in my follow-on article about Jackson and small notes, that his goal was to eliminate all paper money! This would have been a disaster, as his own bankers told him.
Go back to the first Bank of America...Morris was putting in 10 and his his buddies were taking out 50....to pay him off.
In 1913 our political leaders sold this country out to the bankers by creating the Federal Reserve Bank. It took years full of Wars, Depression and Inflation to get us where we are now. The DEBT = MONEY system is the cause of most of our problems. Not until the US Government ends the system by which money is created by borrowing from the bankers ( the Fed is privately owned and the Government issues debt instruments to the Fed which in turn issues Federal Reserve Notes....which we the people think is real money ) we will never ever be a free people captains of our own fate......ABOLISH THE FED !
December 14, 1790
Alexander Hamilton proposes a Bank of the United States.
December 16, 1790
Patric Henry opposes the National bank because it is unconstitutional.
February 25, 1791
President Washington asks his cabinet members for opinions on the National Bank. Thomas Jefferson submitted that such a Bank was unconstitutional and would also violate the yet to be ratified 10th Amendment. Alexander Hamilton submitted that Congress’s power to collect taxes, was also power to create a national bank. Not convinced by either side, Washington sided with Hamilton as it was Hamilton’s job as Secretary of the Treasury to know what he was doing.
December 12, 1791
The Bank of the United States opens it’s doors in Philadelphia.
January 21, 1793
Hamilton and the National Bank are accused of corruption and mismanagement. Opponents to the National Bank call for the demise of the unconstitutional Bank. Congress fails to act.
February 20, 1811
Congress refuses to let the National Bank renew its Charter on the grounds that the Bank is unconstitutional.
March 4, 1811,
The Bank of the United States is dissolved.
January 20, 1815
President Madison vetoes a bill that would create a second National Bank.
January 8, 1816
Faced with financial hardship from the War of 1812, Congress proposes a 2nd National Bank. The Bill also allows the President to suspend hard currency.
March 14, 1816
The 2nd National Bank gets Congressional approval.
January 1, 1817
The 2nd National Bank opens for business.
January 9, 1832
The 2nd National Bank applies for it’s Charter renewal 4 years early.
July 10, 1832
President Jackson vetoes the Bank’s recharter on the grounds that the Bank is unconstitutional.
With the National Bank powerless, Jackson successfully pays off the nations debt leaving the U.S. with a surplus of $5,000.
July 11, 1836
Paper money results in tremendous inflation in property value. President Jackson issues a Specie Circular mandating that land payments be made with gold and silver.
July 4, 1840
President Van Buren approves the Independent Treasury which allows the Federal government to control it’s own money.
June 7, 1841
Henry Clay, on behalf of the Whig party, introduces legislation to abolish the Independent Treasury in hopes to replace the national banking system with a Federal Bank.
July 28, 1841
The Senate passes a bill, sponsored by the Whig party, to revive the 2nd National Bank by creating a Federal Bank that would be called The Fiscal Bank of the United States. (A State chartered Bank for the District of Columbia that would be used by the U.S. Government. ) President Tyler vetoes the bill as unconstitutional.
August 13, 1841
The Independent Treasury Act is repealed leaving the National government without a Banking system for the next 5 years. The Secretary of the Treasury deposits the government’s money into State Banks.
September 3, 1841
Congress again tries to create a Federal Bank. This time, they set it up to be run by State office holders. Again, President Tyler vetoes it as unconstitutional.
September 18, 1873
A flood of paper money snowballs the Nation into a depression that lasts 5 years.
January 14, 1875
The Specie Resumption Act allows legal tender to be exchanged for gold. When the Act goes into affect in 1879, the nation starts to revive from the 1873 depression.
The Nation again goes into a Depression because of paper currency, but J.P. Morgan saves the Nation from a major crisis by providing the government with $100 million dollars in gold.
December 23, 1913
In response to the National Depression in 1907, President Wilson gets Congress to pass the Owen-Glass Federal Reserve Act. The Act is intended to better regulate paper money.
If they had had their way, there would have been no industrial revolution.
Because Jefferson and Jackson were not themselves elite proprietors of enormous, multi-million dollar estates with hundreds of slaves?
Champions of "the common man" were they?
Jackson and Jefferson preferred that the reins of power be placed in the hands of Southern slaveholding agricultural magnates.
Ao they portrayed themselves as humble little farmers who were put upon by the big bad Northeastern bankers and traders.
Thankfully the Federalists were never so pathetic as to hide behind the local Northeastern shopkeeper and stevedore in the way that the Democrats hid behind the local Southern dirt farmer and masqueraded as him.
It's also interesting that Jefferson, who profligately spent his way through an enormous fortune by borrowing vast sums of money he never repaid, was such a foe of the banks who wanted their loans repaid.
I’ve always found this quote interesting.
“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.” - A letter written by Franklin Delano Roosevelt to Colonel House, November 21st, l933
We can bebate whether Jackson was right or what he did was wrong-except he did what was constitutional and abolished the institution that was bankrupting the country. Several other presidents did the same.
Today, we will MAY have the honor of adding over one trillion in debt to our backs because of the slimey banking industry and its slick accounting methods and their lawyers who are out for one thing-POWER. So our debt will increse to some 9 to ten trillion? And then add to that the IOUs that will come due in a few years as a result of robbing the Social Security fund and we will see a debt in excess of 20 trillion? by the year 2020.
We will see the collapse of this nation of ours by the time we all retire. Not a shot will be fired and we will cease to exsist. All because we did not follow the US Constitution.
I off to work. Gotta pay those debts I am not responsible for ya know...