The Coming Battle
By M. W. WALBERT, 1899
"Justice, full and ample justice, to every portion of the
United States, should be the ruling principle of every freeman, and should
guide the deliberations of every public body, whether it be state or
national." - Andrew Jackson.
During the existence of the human race, from the earliest dawn of
civilization to the close of the present century, the power exercised over
the industry, property and conscience of man by cunning and ambition has
assumed many forms.
The form of power which first appeared to oppress and plunder the race,
was exemplified in those celebrated conquerors of antiquity, who traversed
the earth in their bloody careers, transforming blooming fields and rich
and populous cities into deserts, overthrowing whole nations, sacrificing
on the battle, fields countless myriad's of their fellow men - merely
satisfy a species of madness dignified by the name of ambition.
Another and a more dangerous form of misapplied power resulted from the
intellectual tyranny exercised by that shrewd class, the priest-hood, over
the conscience and religious beliefs of the great mass of mankind.
From the days of the Pharaohs down to this period, man, from his
instinctive veneration for a Supreme Being, has been so peculiarly
susceptible to the arts, wiles, and cunning of priest-craft to such a
degree as to excite universal surprise.
8
Those gross superstitions, engrafted on the inherent religious nature of
man, by that wary intellectual superiority, which weighed down the noblest
traits of the human mind; which bred bitter religious animosities; unheard
of extortion's by the corrupt and infamous priestly aristocracies of
various so-called religions, were the well-matured and craftily-devised
schemes for plunder by designing men.
It is almost inconceivable that the ancient Egyptians, that admirable
race, whose noble genius and wonderful energy reared those stately
temples, the magnificent cities, and the stupendous pyramids along the
valley of the Nile, should worship the man-eating crocodile, the savage
vulture, the grinning ape and the crawling lizard.
This race is an example of that soul-darkening superstition which hung
like n pall over the intellect of man.
The countless wars which afflicted Europe, Asia, and Africa for nearly
eighteen centuries; which drowned the finest aspirations of humanity in
blood; which desolated the fairest parts of the earth; which stemmed the
tide toward a higher and a grander civilization, sprang from the base
superstitions originated by the grasping priesthood, who lived in sloth
and luxury upon the labor of the deluded mass of mankind.
The celebrated Vattel, in the twelfth chapter of that noble work, The Law
of Nations, awards us a faint idea of the enormities practiced upon the
people of Europe by the clergy.
9
Taine, in his History of France, shows that the ecclesiastics had seized
upon the most valuable and fertile portion of the territory of that
country, and that the oppression practiced by them upon the French people
was one of the leading causes of the great revolution.
The third and most insidious and most dangerous form of power that has yet
appeared to threaten the material well-being of the race; which new holds
every civilized and semi-civilized people in its merciless grasp; which is
appropriating to itself the productive energies of the world; which is
subordinating the press, the pulpit, and the statesmen of the day to its
ambitious ends; which openly boasts of its nefarious methods in the
courts, legislatures, and other parliamentary bodies of nations, is the
modern money power.
That there is a gigantic combination of the money dealers, a powerful
international trust of usurers, asserting a superiority above all
jurisdictions, and having for its servants the so-called statesmen and
potentates of various nations, who willingly register the decrees of this
money power upon the statute-books of the respective states, is a fact
that can bc sustained by irrefutable evidence.
This great international monetary trust now menaces the very life of this
nation, and the people must dethrone it and subordinate it to their will,
or American liberty will vanish.
The Declaration of Independence, which announced the true principles of
government, was a memorable protest against the rapacious money power
composed of the landed aristocracy, the trading, commercial, and
manufacturing interests of England, which, by a long series of vicious and
unconstitutional acts of Parliament, sought to eat out the substance of
the colonists.
10
The war of the Revolution, which followed, set its seal of approval upon
the patriotic efforts of the colonists against oppression, and freedom was
achieved.
Upon the conclusion of that most righteous conflict, n more perfect union
was formed to establish justice, insure domestic tranquillity, provide for
the common defense, promote the general welfare, and secure the blessings
of liberty for themselves and posterity by the adoption of the Federal
constitution.
General Washington was chosen the first President by a unanimous vote.
For his constitutional advisers he appointed Thomas Jefferson for
Secretary of State; Alexander Hamilton for Secretary of the Treasury;
James Knox for Secretary of War; and Edmund Randolph for Attorney General.
Jefferson, who was the most accomplished scholar in America, the
profoundest thinker upon the principles of Government of any age, the
friend of humanity and a staunch believer in the capacity of the common
people for self-government, was a representative of that industrial
element which sustains society by its labors.
Hamilton, who was an aristocrat by birth and breeding, and who was
connected by marriage with the wealthiest family of the landed aristocracy
of New York, was a strong representative of the trading, banking and
commercial element of New York City and New England, which constituted the
Tory clement of the Revolution.
The presence of two statesmen of such wholly antagonistic views and
temperaments in the cabinet of Washington, naturally originated divisions
of political sentiment, from which sprang two great political parties.
ll
One of the first measures which received the aid and sanction of Hamilton
was the act of Congress adopted February 25, 1791, chartering the Bank of
the United States.
Jefferson, whose penetrating mind perceived the vast power for mischief
lodged in an Institution of that nature, in a powerful communication to
the President, advised him to veto the bill. Washington, however, accepted
the views of Hamilton, his Secretary of the Treasury, and signed the bill,
and it became a law.
By the terms of the act incorporating the bank, its capital was fixed at
ten millions of dollars. The power to issue its circulating notes as money
having full legal tender quality for the payment of taxes and demands due
the Government was conferred upon it. It was made the depositary of the
revenues of the Government, and therefore it became the fiscal agent of
the Treasury department. It was chartered for the period of twenty years.
For the extensive powers and exclusive privileges bestowed upon it by
Congress, the bank paid the United States a small bonus.
This bank, therefore, was a monopoly sustained by the credit and the
revenues of the United States. It had the solo power of issuing legal
tender paper money, and its actual capital was trebled in its earning
capacity by loaning its circulating notes at interest, and by having the
control of the government revenues.
This was the first appearance of an ORGANIZED MONEY POWER in the United
States.
Thomas Jefferson, by voice and pen, in language of rare power and
felicity, pointed out the dangerous possibilities of the bank to influence
the politics and business of the nation.
12
In a letter to Madison in 1793, Jefferson stated that the bank party
consisted of the fashionable circles of Philadelphia, New York, Boston and
Charleston (natural aristocrats). 2. Merchants trading in British capital.
3. Paper men. Against the bank were 1. Merchants trading on their own
capital. 2. Irish merchants. 3. Tradesmen, mechanics, farmers and every
other possible description of our citizens.
In 18ll, Congress refused to re-charter the bank, and as it had during its
brief career obtained the mastery over the entire business of the country
by its loans of circulating notes and the public revenues, and had built
up a system of credit in the commercial centers, to intimidate Congress
and the people, it made a concerted contraction of the currency and
brought on the great panic of 18ll.
United States Senator Benton, in a speech in the senate during the
administration of Jackson, thus graphically states the manner in which the
bank con-trivet to manufacture public sentiment in its favor He says: -
"All the machinery of alarm and distress was in as full activity at that
time as at present, and with the same identical effects- town meetings,
memorials, resolutions, deputations to congress, alarming speeches in
congress. The price of all property was shown to be depressed. Hemp sunk
in Philadelphia from $350 to $250 per ton; flour sunk from $ll.00 per
barrel to $7.75; all real estate fell thirty per cent.; five hundred
houses were suspended in their erection; the rent of money rose to one and
a half per month on the best paper; confidence destroyed; manufactories
stopped; workmen dismissed and the ruin of the country confidently
predicted."
13
The Senator goes on to show that great public meetings werc held,
inflammatory speeches made, cannon fired, great feasts given - all
engineered by the bank. That those members of Congress who favored the
bank, traveled with public honors like conquering generals returning from
victorious battlefields, saluted with acclamations by the masses, escorted
by processions, and that those members favoring the bank were exhibited
throughout the United States as though they werc some superior beings from
the celestial regions.
In 1812 occurred the second war with England, and the bank threw its whole
influence against the United States during that great struggle.
Evidence is not wanting to sustain the charges made that the bank element
of New England planned the separation of that section from the Union.
During the continuance of this war, the United States issued its treasury
notes with full legal tender power, and they were gladly received by the
people.
Albert Gallatin, for twelve years Secretary of the Treasury, and one of
the ablest statesmen of the day, thus bears valuable testimony to the
efficiency of government paper money in carrying the United States through
that war. He says: -
"The paper money carried the United States through the most arduous and
perilous stages of the war, and though operating as a most unequal tax, it
cannot be denied that it saved the country."
In a letter to John Tyler, May 28, 1816, Jefferson says:-
14
"The system of banking we have both equally and ever reprobated. I
contemplate it as a blot left in all our constitutions which, if not
covered, will end in their destruction, which is already hit by the
gamblers in corruption, and is sweeping away in its progress the fortunes
and morals of our citizens. Funding I consider as limited rightfully to a
redemption of the debt within the lives of a majority of the generation
contracting it; every generation coming equally by the laws of the Creator
of the world to the free possession of the earth He made for their
subsistence unincumbered by their predecessors. And I sincerely believe
with you that banking institutions are more dangerous than standing
armies, and that the principle of spending money to be paid by posterity
under the name of funding is but swindling futurity on a large scale."
In a letter of March 2, 1815, written by Jefferson to the celebrated
French author, Say, he said: -
"The government is now issuing treasury notes for circulation, bottomed on
solid funds and bearing interest. The banking confederacy and the
merchants bound to them by their dcbts will endeavor to crush the credit
of these notes; but the country is eager for them as something they can
trust to, and so soon as n convenient quantity of them can get into
circulation the bank notes die."
It has been stated that the bank, during the war of 1812, exerted its
whole influence against the United States. It was a matter of little
concern to it that Great Britain had impressed into her service thousands
of native born citizens of this country, and compelled them, against their
will, to man British guns. What cared the bank that hundreds of American
merchant vessels were confiscated, in a time of profound peace, by orders
of the English government, and that repeated insults had been heaped on
this republic by the insolence of British statesmen?
Although the bank was a creature of the legislative powers of congress,
and had received vast financial benefits from the country, it sought to
embarrass the government in its struggle against Great Britain by arraying
the moneyed class against the struggling republic.
15
Money could not be obtained by means of loans to organize, arm, and equip
the American armies and to construct vessels of war to protect American
commerce. In this emergency the counsel of Jefferson was requested, and he
advised the issue of treasury notes by the government in lieu of
borrowing.
In a letter dated September ll, 1813, he thus stated his position: "The
question will be asked, and ought to bc looked at, What is to be the
course if loans cannot be obtained?" There is but one - "Carthago delenda
est." Bank paper must be suppressed, and the circulating medium must be
restored to the nation to whom it belongs. It is the only fund on which
they can rely for loans; it is the only resource which can never fail
them, and it is an abundant one for every necessary purpose. Treasury
bills, bottomed on taxes, bearing or not bearing interest, as may be found
necessary, thrown into circulation will take the place of so much gold and
silver, which last, when crowded, will find an efflux into other countries
and thus keep the quantum of medium at its salutary level. Let the banks
continue, if they please, but let them discount for cash alone or for
treasury notes."
The sound advice couched in this letter was heeded by the government, and
the country was carried safely through the second war for independence.
Immediately after the close of the war, the bank put forth renewed efforts
to secure a new charter.
At this juncture, William Cobbett, the celebrated English writer and
economist, transmitted a letter to
16
Mr. Dallas, Secretary of the Treasury under President Madison, in which he
strenuously urged him to oppose the project.
As a warning against chartering a bank of issue, Cobbett pointed out the
immense power of the Bank of England to ruin the tradesmen of that
country, and to dictate the political sentiments of that people. He said:
-
London, January 13, 1816.
"To Mr. Secretary Dallas:
"Sir: I have read with great care and uncommon interest your proposition
to congress, under date of 6th December, 1815, for the establishment of a
national bank; and as a part of the reasons which you urge in support of
that proposition appear to bc founded on the experience of a similar
institution in England, I cannot refrain from endeavoring to show you what
some of these effects really have been, and what is at present the
situation of this country, owing, in a great measure, to the existence of
a great banking establishment closely connected with the government.
"It is the evil of a national bank, as experienced by us, to which I
particularly wish to draw your attention. You profess, and I dare say very
sincerely, so to frame this establishment in America that it shall bc
independent of the Government. It is next to impossible, indeed, that you,
or any of the persons in whose hands the Government is, should have a
desire to make a bank what our bank has long been; but while there is a
possibility of its becoming, in any hands or at any time, anything
resembling this bank, it must be a matter of serious dread to every friend
of America that such an establishment is likely to take place. Sir, it is
as a bank of discount that this establishment exercises the most
pernicious influence. The directors, who are a chosen divan, regulate
these discounts, and in so doing decide in some sort upon the rise or
fall, the making or the ruin, of all men in trade, and indeed 17 of most
other men, except such as have no capital at all.
17
"The amount of these discounts at any given time is supposed to bc about
L6,000,000, as they are never for more than two months. Here is a sum of
thirty-six millions lent every year to individuals. The bills for
discounts are sent in; the directors consent or not, without any reasons
assigned. Now, sir, consider the magnitude of the sum discounted. It is
little short of half a million dollars a day, Sundays excepted. It is
perfectly well known to you that in state of such things almost every man
in trade is under the necessity of having a regular supply from
discounting. If he be excluded from his fair share here, he cannot trade
with the same advantage as other men trade. If he be in the practice of
discounting, and if his discounts be cut off, he cannot go on; he stops
payment and is frequently ruined forever, even while he possesses property
which, with the fair chances of time, would not only enable him to pay his
debts but to proceed in prosperity.
"I beseech you, then, sir, to look seriously at the extent of the
dangerous power of these bank directors. You must see that they hold in
their hands the pecuniary fate of a very large part of the community, and
that they have it in their power, every day of their lives, to destroy the
credit of many men, and to plunge their families into shame and misery. If
I am asked for their motives to act like these, to pursue such partiality,
to make themselves the instruments in committing such detestable injustice
and cruelty, need I point out to you that they have been and must be
constantly actuated by the strongest political prejudices? The fact is,
however, that the Bank of England, by means of its power of granting or
withholding discounts, has been, and is one of the most potent instruments
of political corruption, on the one hand, and of political vengeance on
the other hand."
In speaking of the great profits reaped by that bank, this writer said: -
18
"I have given this rough statement that you may be struck with the
magnitude of the object I present to you. Diminish the amount as much as
you fairly can and even then you will dwell upon the subject with a
deliberation you cannot prevent. One fact will at least corroborate what I
have suggested; viz., that the Bank of England had L20,000,000, or nearly
$100,-000,000, surplus in nineteen years, after paying bonuses and
dividing 7 per cent, per annum, which was two fifths more than legal
interest. I will not here allude to the United States Bank, to which I may
hereafter devote an essay. "
The array of facts set out by this writer, in which he exhibited the
appalling power of this bank, did not deter the American statesmen of that
day from their attempt to fasten a like institution on this country.
In 1816, congress chartered the United States Bank with a capital stock of
thirty-five million dollars; to it was delegated the sole power of issuing
notes receivable by the United States for taxes and demands due it; and
designed to serve as the Treasury Department of the government by
receiving and disbursing the public revenues of the nation.
Section 21 of the Bank Act was as follows: -
"That no other bank shall be established by any future law of the United
States, during the continuance of the corporation hereby created, for
which the faith of the United States is hereby pledged. Provided, Congress
may renew existing charters for banks within the District of Columbia, not
increasing the capital thereof, and may also establish any other bank or
banks in said District, with capitals not exceeding, in the whole, six
millions of dollars, if they shall deem it expedient."
By this section Congress surrendered its constitutional powers to
legislate upon a subject within its exclusive jurisdiction for the period
of twenty years, Not satisfied with a monopoly of the currency and banking
of the country, the unlimited greed of the wealthy stockholders of this
bank demanded and secured frown Congress, a pledge of the public faith
that the essential powers of the Government should lie dormant for twenty
years!
19
In the early days of the republic, the accursed spirit of special
privileges had shorn the nation of its means of self-preservation.
For the exclusive powers conferred upon it, the government received in
return for this valuable franchise a small annual bonus.
It will be ascertained from the enormous powers enjoyed by the bank, that
it obtained a monopoly of the circulating medium of the country; that, in
addition to its capital stock of thirty-five million dollars which
constituted its primary loanable fund, it would earn interest upon the
circulating notes issued by it, as wcll as usury upon the government
revenues when used in discounts.
Therefore, by force of law, the interest earning capacity of its capital
was morc than doubled.
It was a colossal moneyed monopoly.
The bank rapidly obtained a practical control over the business of the
nation, and it would tolerate no opposition. By its methods of conferring
substantial favors upon the influential journals of the leading commercial
cities, and by its loans to powerful members of both branches of Congress,
it was enabled to rally to its support a coerced and manufactured public
sentiment - far-reaching and wide-spread as the limits of the Union.
The financial power of the bank, under its able and unscrupulous
management, had become so dominant in its influence that it deemed itself
master of the government and the people.
20
This monopoly believed in the Hamiltonian maxim that a "Public debt is a
public blessing," and, during its career as the fiscal agent of the
Government, threw every obstacle in the way of the payment of the national
debt.
It may be inquired by some why the bank should oppose the payment of the
debt? The reason is obvious. The larger the debt, the more revenues
necessary to pay the interest charge thereon, and, therefore, the more
profit to the bank from the use of the increased revenues in making loans
and discounts.
From 1816 to 1828, it was the sole arbiter of the financial affairs of the
nation, both public and private. Its power in politics was immense, and it
swayed elections at will.
The most eloquent Senators and Representatives were continually sounding
its praises in the halls of Congress as the most perfect financial
institution ever devised by the wit of man. Deluded with the idea that it
was invincible in its influence, and that it was a necessary part of the
machinery of Government, it was confident that its charter would be
renewed before its expiration by limitation of law.
The audacity of the bank was destined to receive a check in its career of
uninterrupted power and success, and its astonishing abuses of its
franchise where to be mercilessly exposed, and it was doomed to fall never
to rise again.
In the presidential election of 1828, Andrew Jackson, the hero of New
Orleans, was elected chief magistrate by a great majority, and the bank,
its defenders, and retainers, were fated to run counter to a patriot and
statesman of invincible will and unflinching integrity.
21
At the time of this election, and prior thereto, the public debt was being
reduced rapidly, and it would not be long before the United States would
not owe a single dollar.
As has been stated, the United States bank strongly opposed the payment of
the debt for the aggrandizement of its own selfish purpose.
On the 8th day of December, 1829, President Jackson, in his first annual
message to Congress, announced to that body that he was opposed to the
bank, and that he would not favor a renewal of its charter. In the year
1830, a large surplus of public revenues accrued to the United States, and
according to law, the money was deposited in the bank. This accumulation
of revenues served to augment the power of the bank as it increased its
resources, and, therefore, its facility to make additional loans and
discounts in the various commercial centers of the country.
President Jackson discerned the policy of the bank, and in 1830 he
advocated the passage of a law distributing these surplus revenues among
the states. He again opposed the renewal of its charter.
United States Senator Benton, of Missouri, a man of great energy,
extensive learning, and commanding ability, thoroughly understood the
means by which the bank had obtained its mastery over the commerce and
industry of the nation, and, therefore, at that session of congress, he
presented a resolution in the United States senate to the effect, that the
charter of the bank ought not to bc renewed. The resolution was lost by a
vote of twenty-three to twenty. The introduction of that resolution and
the narrow majority by which it failed of passage, sounded a note of
warning to the bank, and it gathered all its energies for the struggle
that sooner or later was bound to come.
22
To arouse public sentiment in its behalf, it initiated a policy of
expanding its loans until they reached the vast total of seventy-one
million dollars, which were so judiciously placed among leading merchants
and manufacturers, that, in the event of their being called in by the
bank, a powerful pressure would bc exerted upon the President and Congress
by those who were borrowers of the bank.
On the 4th of July, 1832, a bill to re-charter the bank, after its passage
by Congress, was sent to President Jackson for approval.
Many of the influential political friends of the President, aware of his
intense hostility toward the bank and its methods, importuned him to sign
the bill; large delegations of leading citizens from every trade center in
the country implored him to allow the measure to become a law. Merchants
and importers, who were heavy borrowers from the bank, trooped to
Washington to add their appeals to the petitions already presented.
Its paid hirelings, in the halls of congress and elsewhere, predicted
dreadful results to business interests, should the President not recede
from his opposition to the bill continuing the existence of the bank for
the period of twenty years longer.
To add to the general clamor, the bank, through its officials, avowed its
purpose to precipitate a panic, and to pull down in ruins the business of
the country, should its demands not be concealed. It compelled its
thousands of borrowers to sign distress petitions, which it caused to be
sent to the President as the apparently free expression of public
sentiment.
23
The magazine had long been prepared by the bank, the train was laid, and
Nicholas Biddle, the president of this great financial institution, sat in
his luxurious office, and declared himself ready and willing to apply the
match that would start the most ruinous financial explosion that had yet
shook the foundations of the republic. Mr. Biddle had most able
lieutenants in both branches of congress devoted to his interest.
Daniel Webster, the eloquent orator and great lawyer; Henry Clay, whose
persuasive powers were unrivaled; and Calhoun, the great leader of the
South, led the banking interest in congress.
In a work entitled, "Andrew Jackson and the Bank of the United States,"
William L. Royall thus speaks of the conduct of these three leaders: -
"In addition to all its other sources of power the cause of the bank
received invaluable assistance from the coalition of these great men
(Webster, Clay, and Calhoun). Each was an aspirant for the presidency, and
upon the bank's cause and paper money, each found a common ground upon
which all three could meet and oppose Jack on, the great enemy of both
these things. All the movements of the bank were but a repetition, with a
change of names and dates, of what had taken place on 18ll."
On the other hand, the stalwart Benton was a stern opponent of the bank,
and he was supported by an able array of statesmen of the first rank.
Webster, and Clay advocated a liberal construction of the Constitution,
and were eternally sounding the praises of that instrument as the noblest
work of statesmanship, yet, while ascribing to it the most ample powers
and authority, they strangely supported the theory that the United States
Bank was absolutely necessary to the financial administration of the
Federal Government.
24
Benton was a strict constructionist, and asserted that the general
Government was inherently qualified to transact its financial operations
without the aid or assistance of any bank or system of banks. He ably
maintained the Jeffersonian principles of Government that bank paper
should be suppressed.
In a speech delivered in the United States Senate, Benton thus truly
describes the immense power of the bank over the Government and the
people: -
"The Government itself ceases to be independent, it ceases to be safe when
the national currency is at the will of a company. The Government can
undertake no great enterprise, neither war nor pence, without the consent
and co-operation of that company; it cannot count its revenues six months
ahead without referring to the action of that company - its friendship or
its enmity, its concurrence or opposition - to sec how far that company
will permit money to be scarce or to bc plentiful; how .far it will let
the money system go on regularly or throw it into disorder; how far it
will suit the interest or policy of that company to create a tempest or
suffer a calm in the money ocean. The people are not safe when such a
company has such a power. The temptation is too great, the opportunity too
easy, to put up and put down prices, to make and break fortunes; to bring
the whole community upon its knees to the Neptunes who preside over the
flux and reflux of paper. All property is at their mercy, the price of
real estate, of every growing crop, of every staple article in the market,
is at their command. Stocks are their playthings - their gambling theater,
on which they gamble daily with as little secrecy and as little morality
and far morc mischief to fortunes than common gamblers carry on their
operations."
25
This unanswerable argument, built on impregnable facts, could not be met
by all the eloquence and logic that could be mustered against it by the
great Triumvirate - Clay, Webstcr and Calhoun.
In a message to Congress, President Jackson, in speaking of the banking
power, said: -
"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 unbiased suffrages, or whether the power and money of a
great corporation are to be secretly exerted to influence their judgment
and control their decisions."
These pointed shafts from the executive struck home, and rankled in the
breasts of those Senators and Representatives who supported the bank and
its policy.
When the bank ascertained beyond any doubt that President Jackson was
firmly opposed to its further continuance, it began calling in its loans
rapidly, the volume of currency was contracted greatly by the bank and its
branches, merchants were mercilessly driven to the wall, mills and
factories closed down everywhere, and tens of thousands of skilled workmen
were thrown out of employment, and their families felt the pangs of
hunger, notwithstanding there was abundance in the country.
Every day it tightened its coils around its helpless victims, while
President Biddle sat in his office at the bank, and laughed at the
needless ruin he wrought among his fellowmen. His course is only
paralleled by that of Nero, who is said to have fiddled while Rome was
burning.
26
The great journals of the leading cities, subsidized by loans - presumably
- teemed with editorials denouncing President Jackson anti defending the
course of the bank.
Distress meetings at the same time and at the same points were held, fiery
speeches were made, and strongly worried resolutions were adopted,
requesting the President to append his signature to the bill renewing the
charter of the bank.
There was a singular identity in the editorials written, in the speeches
delivered, and in the resolutions adopted, that gave evidence of a
concerted action. This similarity of sentiments and language in the
journals, speeches, and resolutions, evinced a most remarkable talent, for
combining the various means of influencing President Jackson.
But the hero of New Orleans was as immovable as the Rock of Gibralter.
Andrew Jackson was in many respects the most remarkable man in American
history. A sincere patriot of the purest integrity, with a clearness of
mental vision that was unsurpassed, with a profound insight into the
principles upon which our Government rested, he plainly saw that the
interests of the bank were wholly at variance with that of American
liberty.
He well knew that to transfer to a private corporation for its gain, the
issuance and control of the currency of the country, and to accumulate in
its vaults the national revenues, would eventuate in building up a moneyed
monopoly, ultimately controlling the press, the business interests, and
the legislation of the nation.
That point was now reached.
He was utterly opposed to the Government abdicating its highest sovereign
function,- the issuance and control of the currency,- and delegating it to
individuals or to corporations for their gain.
27
He was conversant with the traitorous conduct of the bank during the war
of 1812, and he concurred in the declaration of Jefferson that, "Banks of
issue were more dangerous to the liberties of the people than standing
armies. "
In speaking of the firmness displayed by President Jackson against the
arrogance of the bank, the distinguished historian Bancroft says: -
"When the period for addressing Congress drew near, it was still urged
that to attack the bank would forfeit his popularity and secure his future
defeat. The President replied, 'It is not for myself that I care.' It was
urged that haste was unnecessary, as the bank had still six unexpired
years of chartered existence. 'I may die,' he replied, 'before another
Congress comes together, and I could not rest quietly in my grave, if I
failed to do what I hold so essential to the liberty of my country.' "
Bancroft further says, that, upon one occasion when the bank conflict had
reached its greatest height, the President and some of his friends were
standing over the rocks of the Rip Raps, looking out upon the ocean, when
the subject of chartering the bank was brought forward, whereupon the
President remarked, "Providence may change my determination; but man no
more can do it than he can remove these Rip Raps, which have resisted the
rolling ocean from the beginning of time."
History fails to record a nobler sublimity of purpose than that displayed
by President Jackson during the war of the bank upon the people.
28
Notwithstanding the immense prcssure brought to bear upon him, President
Jackson, on the 10th day of July, 1832, returned the bill to the Senate,
whence it originated, accompanied with his veto message, which was a
masterly exposition of his views upon the true principles of free
Government, and it ranks in importance with the Declaration of
Independence.
The first reason assigned by the President in his objections against the
'renewal of the charter of the bank was, that it created a monopoly under
the authority of the general Government, and, therefore, it increased the
value of its stock far above its par value, which operated as a gift of
many millions to its stock holders.
The President laid down the fundamental principle, that a monopoly should
only bc granted when it returned a fair equivalent to the people.
He showed that while its capital stock was fixed at $28,000,000, to confer
this privilege upon the bank would add the enormous sum of $17,000,000 to
the value of the stock, and for this immensely valuable franchise the
Government would receive the pitiful sum of $200,000 per annum.
The President advocated the sale of the stock to the highest bidder, and
that the premium received there from by the Government be paid into the
national Treasury to lighten the burdens of taxation in lieu of its
bestowal upon a few wealthy citizens.
He stated that $8,000,000 of the stock of the present bank was held by
foreigners, chiefly in England; that this was the most dangerous feature
of the plan; that a majority of the shares of its stock might fall into
those alien hands, and that in the event the United 29
States would be involved in war with that nation, thus holding a large
amount of the stock of this great bank monopoly, its influence would be
thrown against the United States.
29
The President says: -
"All its operations within would be in aid of the hostile fleets and
armies without. Controlling our currency, receiving our public moneys, and
holding thousands of our citizens in dependence, it would be more
formidable and dangerous than the naval and military power of the enemy."
He produced figures demonstrating the sectional character of the bank,
that out of $35,000,000 of stock, $8,405,500 were held chiefly by Great
Britain; only $140,200 were held by the nine great western states;
$3,455,598 in the four southern states, and $13,522,000 in the eastern and
middle states.
That in 1831, the profits of the bank were $3,455,598 of this amount the
western states contributed $1,640,048; the four southern states $352,507,
and the middle and eastern states $1,463,041.
It will be ascertained that under the operations of this banking monopoly,
the agricultural states of the West were paying heavy tribute to the East.
It was further pointed out by the President, that the principle of
taxation involved in the bill was radically Wrong in this: that only the
stock could be taxed where held, Therefore, while the nine western states
paid $1,640,048 in profits to the bank, only $140,200 of its stock was
held there subject to taxation; that, in the year 1831, the branch bank at
Mobile earned dividends of $95,140, yet the state of Alabama could not tax
the property of the bank, because net a single share of its stock was
owned in its jurisdiction.
30
The foreign stock holders could not be taxed a single penny on their
holdings, as they were beyond the taxing power of the United States. The
foreign stock holder would be drawing large dividends from the America
people without bearing any of the burdens of government. This would tend
to alien ownership of this bank, non-contribution to the- burdens of
Government creating this valuable privilege, and a continued drainage of
specie to foreign nations.
The fourth section of the proposed law provided: -
"That the bills and notes of said corporation, although the same be, on
the faces thereof, made payable at one place only, shall, nevertheless, be
received by the said corporation at the bank or at any of the offices
thereof, if tendered in liquidation or payment of any balance or balances
due to said corporation, or to such office of discount and profit from any
other incorporated bank."
The right thus conferred upon state banks to pay their debts to the United
States Bank, with the notes and bills of any branch bank thereof, would
tend to unify the whole banking interest of the nation into a powerful
combination, while at -the same time, any individual who held currency
issued by a branch of the United States Bank, situated at any other place
than his residence, was deprived of that right, therefore, be would be
compelled to discount the bills of the branch bank, or transmit them to
Philadelphia to obtain the cash for them.
These were a few of the reasons assigned by the President in his famous
veto message.
It is now conceded by the most eminent historians of America, that General
Jackson, in throttling the corrupt and unscrupulous money power of that
day, saved the nation.
31
On the 8th of January, 1815, General Jackson had met the veterans of
Wellington at New Orleans, and inflicted upon them the most disastrous
defeat ever suffered by England, and shed undying renown upon American
arms. He saved America then, and he preserved its independence in 1832.
By act of Congress, June 28, 1834, a change was made in the coinage laws
of April 2, 1834 atter act, the legal ratio of silver to gold was fixed at
fifteen to one, that is, fifteen pounds of pure silver were the legal
equivalent of one pound of pure gold, and this ratio was maintained until
the passage of the act of June 28, 1834.
France and the other Latin States maintained a legal ratio of fifteen and
one half to one. Consequently the United States over-valued silver when
compared with gold. The bullion dealers, over on the alert for a profit,
sent the gold abroad and sold it at a premium. To remedy this, the act of
June 28, 1834, reduced the quantity of gold in the gold eagle from 2471/2
grains of pure gold to 232 grains, or a reduction in the ten dollar gold
piece from 270 grains of standard gold to 258 grains. A corresponding
reduction was made in the half-eagle and quarter-eagle. A fraction over
six per cent of gold bullion was therefore deducted from the gold coins.
This made the legal ratio of silver to gold stand at sixteen to one. By
this act, silver was undervalued and gold made its appearance in
circulation, and silver disappeared from the channels of trade.
The object of the passage of this law was to supersede the United States
Bank bills by the substitution of gold coin as a circulating medium. The
people remembered the great efforts of the bank to monopolize the entire
volume of money in the country, and gladly received the two and one half,
five and ten dollar gold pieces in preference to bank notes.
32
This substitution of gold coin for bank notes greatly diminished the
profits of the bank, and it immediately declared war upon that coin. Its
subsidized press, its minions and dependents denounced this species of
money in terms of ridicule. The subservient tools of the bank, when
offered gold coin in the ordinary transactions of business, would shudder
and recoil at its appearance, and demand United States bank notes as the
superior money.
In the meantime, however, in 1832, a presidential election was held. Henry
Clay was put forward as the candidate of the Whigs and of the bank power.
Andrew Jackson was the candidate of the Democratic party, and represented
the principles of Jefferson. Jackson received two hundred nineteen
electoral votes to forty-nine for Clay. The prophecies of those Democrats
that Jackson had ruined the party by his contest with the bank were
refuted by a decisive vote of the people.
REMOVAL OF THE GOVERNMENT DEPOSITS
The next step taken by the President to curtail the power of the bank for
mischief, was the removal of the government deposits amounting to many
millions of dollars.
After the bank so signally failed to obtain a renewal of its exclusive
banking privileges, it did not alleviate from its policy of inflicting
distress and ruin upon the people.
33
From the 1st day of August, 1833, to the 30th of June, 1834, it continued
its contraction of the currency by calling in its loans, giving as its
reasons therefor, that the Government was harassing it on every hand. It
had ample time in which to arrange its affairs without seriously crippling
the business of the country and its excuse was not valid.
Although many millions of public revenues were under its sole charge,
constituting a loanable fund for the benefit of the bank, its hireling
press teemed with abuse against the administration of President Jackson.
The President, in view of all the facts within his knowledge, entertained
the opinion that the bank was insolvent, and an unsafe depository for the
public moneys. He had previously communicated his belief to Congress as to
the unsafe condition of the bank, but such was its influence in that body,
that the House of Representatives, by a practically unanimous vote,
declared its confidence in the institution.
In the lawful exercise of his powers, the President ordered the Secretary
of the Treasury, through the five government directors, to investigate its
financial condition. The directors made a demand upon the bank for an
inspection of its books, but they were denied access to them, In the face
of the obstacles thrown in their way to ascertain its true condition, the
directors made an investigation with astonishing results.
34
To obtain a ful1, true, and complete statement of the expenditures of the
bank for political purposes, the official directors submitted a resolution
to the full board of the bank, requesting the cashier to furnish a
statement to the board, as early as possible, showing what amount was paid
out for certain purposes, the sums of money paid to each person, the
quantity and names of documents furnished by him, and his charges for the
distribution of them. Similar statements were requested from the various
branch offices of the bank. The resolution was voted down by the board of
directors, and a substitute was adopted expressing inexplicit confidence
in the course of its president - Nicolas Bible.
Subsequent events gave satisfactory explanation why the officials of the
bank pursued That course in refusing an inspection of the books. Upon a
report of the government directors setting forth these facts, the
President assumed the responsibility of removing the public moneys from
the bank, and distributed them among the various state banks.
In this course he met decided opposition to this order in his cabinet. The
Secretary of the Treasury, William J. Duane, peremptorily refused to obey
the command of his chief, and for this act of insubordination he was
summarily removed from his office.
Attorney General Taney was appointed to fill the vacancy occasioned by
Duane's removal, and the order was executed to the letter.
The bold stand taken by the President in the removal of the deposits,
stirred up the wrath of the bank party in Congress, and Henry Clay offered
a resolution in the United States Senate as follows: -
"Resolved, That the President in the late executive proceeding in relation
to the public revenue, has assumed upon himself authority and power not
conferred by the constitution and laws, but in derogation of both."
This resolution censuring President Jackson was adopted by the Senate on
the 28th of March, 1834.
35
The bank pointed to this action of the senate as proof of its great power.
On the 15th day of April, 1834, President Jackson transmitted a message to
the Senate, respectfully protesting against this implied impeachment of
his official acts. His communication to that body was a magnificent
exposition of constitutional law, and he severely arraigned the senate for
passing judgment upon him without granting him an opportunity to be heard
in his defense.
Three years afterward the resolution of Clay was expunged from the
journals of the senate.
The President was fated to emerge triumphant from every contest with the
banking power.
The bank still continued its warfare upon the people. It avowed its
purpose to precipitate a
wide spread panic. It announced its intention to crush the business of the
nation, unless the order of removal was recalled, and the deposits
restored. The pressure brought to bear by the bank was directed at the
chief commercial and industrial centers. The havoc wrought by-it was as
broad, as the range of its operations, and its course was sustained by
politicians as one of self defense.
Public men who were deeply indebted to it openly upheld its conduct. One
of these purchasable demagogues owed the bank the great sum of $100,000,
and his defense of his owner was in direct proportion to his obligation to
his master - the bank. One loan of $1,100,000 was made by it to a broker
in New York City, at which time it was steadily contracting the currency
at every point where it was represented by an office. The broker to whom
this immense loan was made, accumulated a fortune by speculating with this
money upon the misfortunes of others.
36
Distress meetings were held everywhere under the auspices of the bank,
resolutions were adopted, and memorials were presented to the President,
requesting him to rescind his order of removal, but without avail.
The presidents, vice-presidents, and various other officers of the
so-called distress meetings were selected from those who had supported
Jackson for the presidency, which fact was always announced to the people.
The petitions, memorials, and remonstrances presented to the President but
served to strengthen his determination to crush the bank, and the last
fangs of the oppressors were pulled by the removal of these deposits
amounting to $40,000,000.
It must be borne in mind, that during the administration of Jackson, a
controversy arose between the United States and France with reference to
the depredations committed upon our merchant marine by the latter nation
during the Directory. A treaty had been concluded by the administration
with the kingdom of France on the 4th of July, 1831, by the provisions of
which, the latter power agreed to pay the United States the sum of
$5,000,000, as indemnity for such depredations.
The French authorities failed to pay the first installment thereof, and
the Secretary of the Treasury, under the direction of the President, drew
a bill of exchange upon France for the amount. The bill was transmitted to
Paris through the United States Bank as the fiscal agent of the
Government. The authorities of France refused to honor the bill, and it
was protested, whereupon the bank seized upon the Government funds in its
37
possession to the amount of $170,040 which it claimed as damages for the
protestation of the bill. This high handed procedure was clearly illegal
on the part of the bank, and violative of the Constitution which provides
that no money shall be drawn from the treasury, except through
appropriations made by Congress.
To force a suspension of specie payments by state banks of issue, it drew
immense bills of exchange on Paris, where it had no money, for the payment
of them, then drew vast sums of specie out of the banks of New York City,
and transmitted it to Paris to meet the bills so drawn by it.
In speaking of the course of the bank, in attempting to force a suspension
of specie payments by the state banks of issue, Mr. Royall says: -
"It was certainly not too good to do so, and in the year 1841, just before
it finally expired, it is proved to have attempted to create a general
suspension, by forcing the banks of the city of New York to suspend. The
manner of this attempt was afterward related by its cashier. It consisted
in selling bills in unlimited quantities on Paris - at this time in great
demand - where it had not a cent to meet them, and drawing the coin with
the proceeds of these sales out of the New York banks and shipping it
abroad to meet these bills as they made their appearance there. The bills,
however, got to Paris before the coin, came back protested, and the great
bubble was finally pricked."
This act was committed by the bank to embarrass the government, to
emphasize the panic than beginning to rage, and to bankrupt the business
interests of the nation.
In short, no trick, device, or artifice was too villainous or traitorous
for the bank to injure the credit of the Government and the happiness of
the people.
38
The bank again failed to obtain a charter in 1841.
The rottenness of the bank then became known, and a complete investigation
into its management from 1830 to 1836, instituted by the stockholders,
developed an astonishing degree of villainy, corruption, and rascality
that was appalling, and the results of which more than sustained the
charges brought against it by President Jackson and his supporters.
It was discovered that hundreds of thousands of dollars were expended by
President Biddle in influencing elections, subsidizing the press, and
bribing members of Congress.
The stockholders, on the completion of this investigation, instituted a
suit against President Biddle in the United States circuit court at
Philadelphia, for the sum of $1,018,000 expended by him for which no
vouchers could be found.
It was further demonstrated that, from 1830 to 1836, during the struggle
of the bank for a new lease of corporate life, loans, aggregating more
than $30,000,000, were. made by its president to members of Congress,
editors of newspapers, politicians of all grades, jobbers and brokers,
mostly without security.
Perhaps all the facts connected with its management were never made known,
on the ground of public policy, as the reputations of many eminent men,
not excepting presidential candidates, would have been utterly ruined.
In speaking of the contest between the bank and President Jackson, Parton,
the biographer, says: -
"In these Jacksonian contests, therefore, we find nearly all the talent,
near1y all the learning, nearly all the ancient wealth, nearly all the
business activity,
39
nearly all the book-nourished intelligence, nearly all the silver-forked
civilization of the country, united in opposition to General Jackson, who
represented the country's untutored instincts."
Parton further says that Jackson was called a murderer, a traitor, an
ignoramus, a fool, a crook-back, a pretender, and various other vile
names.
Nicolas Biddle, who, to a very large extent, was responsible for the
gigantic conspiracies, bank-panic with their resultant ruin and misery,
was driven in disgrace from his exalted position, and he died a shameful
death almost unknown, unhonored, and unsung.
The man before whom bowed in fawning adulation great and wise statesmen,
merchant princes, editors of powerful journals, and leaders of public
opinion; he, who, in the magnitude of his financial plans and
undertakings, rivaled the money kings of Europe; he, who arrayed dollars
against the immutable principles of justice and the rights of man, lived
to see his name become a by-word, a hissing, and a reproach.
The career of the United States Rank and its president is an awful
monument of warning on the highway of time to come, an object lesson to
that colossal greed of power, which, to tighten its grip upon the people,
scatters distress and ruin in its train, and which, from its ramparts of
ill-gotten wealth obtained by monopoly and special privileges, defies the
laws of man and the laws of God.
On the other hand, the fame of Jackson shines more and more with the lapse
of time.
Thomas Jefferson, the founder of American Democracy, and the friend of the
human race, is honored as
40
the great constructive statesman of America; Andrew Jackson is revered as
that great leader who regenerated the politics of his country, and rescued
a people from financial slavery. During his administration, the public
debt was wholly paid, a large surplus of public revenues accumulated to
the credit of the United States, the money power was dethroned, the
American nation was honored everywhere, 'and he retired from the
presidency amid the plaudits of his countrymen.
In his farewell address to the people, March 3, 1837, he solemnly warned
them against the money power, that special privileges must not be granted
to any class of citizens, and that justice must be the basis of public and
private conduct.
In this noble document, the President admonishes the people to be on their
guard against the money power. He says: -
"But when the charter for the bank of the United States was obtained from
Congress, it perfected the paper system, and gave to its advocates the
position they have struggled to obtain from the commencement of the
Federal Government down to the present hour. The immense capital and
peculiar privileges bestowed upon it, enabled it to exercise despotic sway
over the other banks in every part of the country. From its superior
strength it could seriously injure, if not destroy, the business of any
one of them that would incur its resentment; and it openly claimed for
itself the power of regulating the currency throughout the United States.
In other words, it asserted (and undoubtedly possessed) the power to make
money plenty or scarce, at its pleasure, at any time, and in any quarter
of the Union, by controlling the issues of other banks, and in permitting
an expansion, or compelling a general contraction of the circulating
medium according to its own will.
41
"The other banking institutions were sensible of its strength, and they
soon became generally its obedient instruments, ready at all times to
execute its man-dates; and with the other banks necessarily went also that
numerous class of persons in our commercial cities who depend altogether
on bank credits for their solvency and means of business, and who are
therefore ' obliged, for their safety, to propitiate the favor of the
money power by distinguished zeal and devotion in its service, The result
of the ill-advised legislation which established this great monopoly, was
to concentrate the whole moneyed power of the Union, with its boundless
means of corruption, and its numerous dependents, under the direction and
command of one acknowledged head; thus organizing this particular interest
as one body, and securing to it unity of action throughout the United
States, and enabling it to bring forward, upon any occasion, its entire
and undivided strength to support or defeat any measure of the government.
In the hands of this formidable power, thus perfectly organized, was also
placed unlimited dominion over the amount of circulating medium, giving it
the power to regulate the value of property, and the fruits of labor in
every quarter of the Union; and to bestow prosperity, or bring ruin upon
any city or section of the country as might best comport with its own
interests or policy.
"We are not left to conjecture how the moneyed power, thus organized, and
with such a weapon in its hands, would be likely to use it. The distress
and alarm which pervaded and agitated the whole country, when the Rank of
the United States waged war upon the people in order to compel them to
submit to their demands, cannot yet be forgotten. The ruthless and
unsparing temper with which whole cities and communities were oppressed,
individuals impoverished and ruined, a scene of cheerful prosperity
suddenly changed into one of gloom and despondency, ought to
42
be indelibly impressed on the memory of the people of the United States.
If such was its power in a time of peace, what would it not have been in a
season of war, with an enemy at your doors. No nation but the freeman of
the United States could have come out victorious from such contest; yet,
if you had not conquered, the Government would have passed from the hands
of the many to the hands of the few; and this organized money power, from
its secret conclave, would have dictated the choice of your highest
officers, and compelled you to make peace or war, as best suited their own
wishes. The form of your Government might for a time have remained, but
its living spirit would have departed from it."
The wise counsel coached in these golden words of President Jackson are
now morc applicable than when uttered by him.
In the election of 1836, Martin Van Buren succeeded Jackson in the
presidency. The panic engineered by the bank enveloped the people, and the
whole system of credit built up by it fell with a crash. In fact the bank
had so shrewdly manipulated the volume of money, and so absolute was its
control over it, that society had resolved itself into two classes, a
creditor class, small in numbers, but powerful in influence; a debtor
class, constituting a great majority of the people, but helpless in the
grasp of the creditor class.
One was the master, the other the servant.
During the administration of Van Buren, the Independent Treasury Bill
became a law.
Thus the work begun by Jackson in-crushing the bank, was consummated by
the separation of the public moneys from those of the banks - a most
salutary reform.
--------------------------------------------------------------------------------
To
Chapter 2
To the
Table of Contents
The world gets crazier and crazier everyday, doesn't it? The world that many
of us thought was there, isn't. The bottom has dropped out of everything. The
illusions have been revealed, we have found out who has been pulling the strings
behind the scenes. Millions have lost their jobs, have mortgage
problems, and
foreclosure. What can be done? Amazingly, we have been mislead. We have been
taught that we can control government by voting. The founder of the Rothschild
dynasty, Mayer Amschel Bauer, told the secret of controlling the government
of a nation over 200 years ago. He said, "Permit
me to issue and control the money of a nation and I care not who makes its
laws." Get
the picture? Your freedom hinges first on the nation's banks and money system.
It's all about 'commerce'. Freedom is connected with Debt Elimination for
each individual. Not only does this end
personal debt, it places the people first in line
as creditors to the National Debt ahead of the banks. They don't wish for
you to know this. It has to do with recognizing WHO you really are in A
New Beginning: A Practical Course in Miracles, an informational study. Is
your credit rating bad for reasons that seem out of your control? There are
ways of credit repair,
so you can men those broken fences too. Do you want to keep your children protected
from outside forces, there are ways of protecting
your children. Do you want
to keep your sons and daughters free from 'the draft'? Check this out.
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The myriad of facts, conjecture, perspectives, viewpoints, opinions, analyses,
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range from cutting edge hard news and comment to extreme and unusual perspectives.
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Ten minute exerciser, all you have to do is find ten spare
minutes a few times a week to reach optimal results. 
Whole Body
Vibration is a fascinating new technology, and is being used
by celebrities and athletes
the world over. From hard bodies like Madonna and Gwen Stefani,
to champion Lance Armstrong, vibration exercise is the choice
among the fittest today. Many professional Sports teams now
use Whole Body Vibration in their training.
SALE
$2775.00
till 12/25/09
(free shipping up to $125
in continental U.S.)
For more information on the Noblerex
K1
Please Click
Here |
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