![Biblewheel: A wise king scattereth the wicked, and bringeth the wheel over them. [Pro 20:26 KJV]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiFT6-YCyrSoMjVlsXjQIWJVHaMXsChgqmAIk9mLeNmsgqWXD94k5TOPejvnORdnQ39OL3U4FleKWbC1r46q2t5nYnipb_qDZFNHQR_YXesnm6ucYt2g1DjbBhXnZmML3IHhunsYSeRBU/s1600-r/biblewheel_traced_edited.png)
Spoke 18: The Biblewheel and The 18th Century
(Go back to main Menu)The Present Banking System
“Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out!”
Bank War
| Bank War | |||
|---|---|---|---|
 Cartoon depicting the political conflict between Andrew Jackson and Nicholas Biddle over the Second Bank of the United States | |||
| Date | 1832–1836[1] | ||
| Parties to the civil conflict | |||
| |||
| Lead figures | |||
The Bank War was a political struggle that developed over the issue of rechartering the Second Bank of the United States (B.U.S.) during the presidency of Andrew Jackson (1829–1837). The affair resulted in the shutdown of the Bank and its replacement by state banks.
The Second Bank of the United States was established as a private organization with a 20-year charter, having the exclusive right to conduct banking on a national scale. The goal behind the B.U.S. was to stabilize the American economy by establishing a uniform currency and strengthening the federal government. Supporters of the Bank regarded it as a stabilizing force in the economy due to its ability to smooth out variations in prices and trade, extend credit, supply the nation with a sound and uniform currency, provide fiscal services for the treasury department, facilitate long-distance trade, and prevent inflation by regulating the lending practices of state banks.[2] Jacksonian Democrats cited instances of corruption and alleged that the B.U.S. favored merchants and speculators at the expense of farmers and artisans, appropriated public money for risky private investments and interference in politics, and conferred economic privileges on a small group of stockholders and financial elites, thereby violating the principle of equal opportunity. Some found the Bank's public–private organization to be unconstitutional, and argued that the institution's charter violated state sovereignty. To them, the Bank symbolized corruption while threatening liberty.
In early 1832, the president of the B.U.S., Nicholas Biddle, in alliance with the National Republicans under Senators Henry Clay (Kentucky) and Daniel Webster (Massachusetts), submitted an application for a renewal of the Bank's twenty-year charter four years before the charter was set to expire, intending to pressure Jackson into making a decision prior to the 1832 presidential election, in which Jackson would face Clay. When Congress voted to reauthorize the Bank, Jackson vetoed the bill. His veto message was a polemical declaration of the social philosophy of the Jacksonian movement that pitted "the planters, the farmers, the mechanic and the laborer" against the "monied interest".[3] The B.U.S. became the central issue that divided the Jacksonians from the National Republicans. Although the Bank provided significant financial assistance to Clay and pro-B.U.S. newspaper editors, Jackson secured an overwhelming election victory.
Fearing economic reprisals from Biddle, Jackson swiftly removed the Bank's federal deposits. In 1833, he arranged to distribute the funds to dozens of state banks. The new Whig Party emerged in opposition to his perceived abuse of executive power, officially censuring Jackson in the Senate. In an effort to promote sympathy for the institution's survival, Biddle retaliated by contracting Bank credit, inducing a mild financial downturn. A reaction set in throughout America’s financial and business centers against Biddle's maneuvers, compelling the Bank to reverse its tight money policies, but its chances of being rechartered were all but finished. The economy did extremely well during Jackson's time as president, but his economic policies, including his war against the Bank, are sometimes blamed for contributing to the Panic of 1837.
Resurrection of a national banking system[edit]
The First Bank of the United States was established at the direction of Treasury Secretary Alexander Hamilton in 1791. Hamilton supported the foundation of a national bank because he believed that it would increase the authority and influence of the federal government, effectively manage trade and commerce, strengthen the national defense, and pay the debt. It was subject to attacks from agrarians and constructionists led by Thomas Jefferson and James Madison. They believed that it was unconstitutional because the Constitution did not expressly allow for it, would infringe on the rights of the states, and would benefit a small group while delivering no advantage to the many, especially farmers. Hamilton's view won out and the Bank was created.[4] More states and localities began to charter their own banks. State banks printed their own notes which were sometimes used out-of-state, and this encouraged other states to establish banks in order to compete.[5] The bank, as established, acted as a source of credit for the US government, and as the only chartered interstate bank, but lacked the powers of a modern central bank: It did not set monetary policy, regulate private banks, hold their excess reserves, could not print fiat money (only coin money backed by its capitalization), or act as a lender of last resort.[6]
President Madison and Treasury Secretary Albert Gallatin supported recharter of the First Bank in 1811. They cited "expediency" and "necessity," not principle. Opponents of the Bank defeated recharter by a single vote in both the House and Senate in 1811.[7] State banks opposed recharter of the national bank because when state bank notes were deposited with the First Bank of the United States, the Bank would present these notes to state banks and demand gold in exchange, which limited the state banks' ability to issue notes and maintain adequate reserves of specie, or hard money. At that time, bank notes could be exchanged for a fixed value of gold or silver.[8]
The arguments in favor of reviving a national system of finance, as well as internal improvements and protective tariffs, were prompted by national security concerns during the War of 1812.[9] The chaos of the war had, according to some, "demonstrated the absolute necessity of a national banking system".[10] The push for the creation of a new national bank occurred during the post-war period of American history known as the Era of Good Feelings. There was a strong movement to increase the power of the federal government. Some people blamed a weak central government for America's poor performance during much of the War of 1812. Humiliated by its opposition to the war, the Federalist Party, founded by Hamilton, collapsed. Nearly all politicians joined the Republican Party, founded by Jefferson. It was hoped that the disappearance of the Federalist Party would mark the end of party politics. But even in the new single party system, ideological and sectional differences began to flare up once again over several issues, one of them being the campaign to recharter the Bank.[11]
In 1815, Secretary of State James Monroe told President Madison that a national bank "would attach the commercial part of the community in a much greater degree to the Government [and] interest them in its operations…This is the great desideratum [essential objective] of our system."[12] Support for this "national system of money and finance" grew with the post-war economy and land boom, uniting the interests of eastern financiers with southern and western Republican nationalists. The roots for the resurrection of the Bank of the United States lay fundamentally in the transformation of America from a simple agrarian economy to one that was becoming interdependent with finance and industry.[13][14] Vast western lands were opening for white settlement,[15] accompanied by rapid development, enhanced by steam power and financial credit.[16] Economic planning at the federal level was deemed necessary by Republican nationalists to promote expansion and encourage private enterprise.[17] At the same time, they tried to "republicanize Hamiltonian bank policy." John C. Calhoun, a representative from South Carolina and strong nationalist, boasted that the nationalists had the support of the yeomanry, who would now "share in the capital of the Bank".[18]
Despite opposition from Old Republicans led by John Randolph of Roanoke, who saw the revival of a national bank as purely Hamiltonian and a threat to state sovereignty,[19] but with strong support from nationalists such as Calhoun and Henry Clay, the recharter bill for the Second Bank of the United States was passed by Congress.[20][21] The charter was signed into law by Madison on April 10, 1816.[22] The Second Bank of the United States was given considerable powers and privileges under its charter. Its headquarters was established in Philadelphia, but it could create branches anywhere. It enjoyed the exclusive right to conduct banking on a national basis. It transferred Treasury funds without charge. The federal government purchased a fifth of the Bank's stock, appointed a fifth of its directors, and deposited its funds in the Bank. B.U.S. notes were receivable for federal bonds.[23]
"Jackson and Reform": Implications for the B.U.S.[edit]
Panic of 1819[edit]
The rise of Jacksonian democracy was achieved through harnessing the widespread social resentments and political unrest persisting since the Panic of 1819 and the Missouri Crisis of 1820.[24] The Panic was caused by the rapid resurgence of the European economy after the Napoleonic Wars, where improved agriculture caused the prices of American goods to drop, and a scarcity of specie due to unrest in the Spanish American colonies. The situation was exacerbated by the B.U.S. under Bank President William Jones through fraud and the rapid emission of paper money. He eventually began to call in loans, but nonetheless was removed by the Bank's directors. Langdon Cheves, who replaced Jones as president, worsened the situation by reducing the Bank's liabilities by more than half, lessening the value of Bank notes, and more than tripling the Bank's specie held in reserve. As a result, the prices of American goods abroad collapsed. This led to the failure of state banks and the collapse of businesses, turning what could have been a brief recession into a prolonged depression. Financial writer William Gouge wrote that "the Bank was saved and the people were ruined".[25]
After the Panic of 1819, popular anger was directed towards the nation's banks, particularly the B.U.S.[24] Many people demanded more limited Jeffersonian government, especially after revelations of fraud within the Bank and its attempts to influence elections.[26] Andrew Jackson, previously a major general in the United States Army and former territorial governor of Florida, sympathized with these concerns, privately blaming the Bank for causing the Panic by contracting credit. In a series of memorandums, he attacked the federal government for widespread abuses and corruption. These included theft, fraud, and bribery, and they occurred regularly at branches of the National Bank.[27] In Mississippi, the Bank did not open branches outside of the city of Natchez, making small farmers in rural areas unable to make use of its capital. Members of the planter class and other economic elites who were well-connected often had an easier time getting loans. According to historian Edward E. Baptist, "A state bank could be an ATM machine for those connected to its directors."[28]
One such example was in Kentucky, where in 1817 the state legislature chartered forty banks, with notes redeemable to the Bank of Kentucky. Inflation soon rose and the Kentucky Bank became in debt to the National Bank. Several states, including Kentucky, fed up with debt owed to the Bank and widespread corruption, laid taxes on the National Bank in order to force it out of existence. In McCulloch v. Maryland (1819), the Supreme Court ruled that the Bank was both constitutional and that, as an agent of the federal government, it could not be taxed.[29]
In 1819, Monroe appointed Nicholas Biddle of Philadelphia as Government Director of the Bank. In 1823, he was unanimously elected its president. According to early Jackson biographer James Parton, Biddle "was a man of the pen—quick, graceful, fluent, honorable, generous, but not practically able; not a man for a stormy sea and a lee shore".[30] Biddle believed that the Bank had the right to operate independently from Congress and the Executive, writing that "no officer of the Government, from the President downwards, has the least right, the least authority" to meddle "in the concerns of the Bank".[28]
Rise of Jackson[edit]
The end of the War of 1812 was accompanied by an increase in white male suffrage. Jackson, as a war hero, was popular with the masses. With their support, he ran for president in 1824.[31] The election turned into a five-way contest between Jackson, Calhoun, John Quincy Adams, William H. Crawford, and Clay. All were members of the Republican Party, which was still the only political party in the country.[32] Calhoun eventually dropped out to run for vice president, lowering the number of candidates to four.[33] Jackson won decisive pluralities in both the Electoral College and the popular vote.[34] He did not win an electoral majority, which meant that the election was decided in the House of Representatives, which would choose among the top three vote-getters in the Electoral College. Clay finished fourth. However, he was also Speaker of the House, and he maneuvered the election in favor of Adams, who in turn made Clay Secretary of State, an office that in the past had served as a stepping stone to the presidency. Jackson was enraged by this so-called "corrupt bargain" to subvert the will of the people.[35] As president, Adams pursued an unpopular course by attempting to strengthen the powers of the federal government by undertaking large infrastructure projects and other ventures which were alleged to infringe on state sovereignty and go beyond the proper role of the central government. Division during his administration led to the end of the single party era. Supporters of Adams began calling themselves National Republicans. Supporters of Jackson became known as Jacksonians and, eventually, Democrats.[36]
In 1828, Jackson ran again. Most Old Republicans had supported Crawford in 1824. Alarmed by the centralization in the Adams administration, most of them flocked to Jackson.[37] The transition was made relatively easy by the fact that Jackson's own principles of government, including commitment to reducing the debt and returning power to the states, were largely in line with their own.[38] Jackson ran under the banner of "Jackson and Reform", promising a return to Jeffersonian principles of limited government and an end to the centralizing policies of Adams.[39] The Democrats launched a spirited and sophisticated campaign.[40] They characterized Adams as a purveyor of corruption and fraudulent republicanism, and a menace to American democracy.[41][42] At the heart of the campaign was the conviction that Andrew Jackson had been denied the presidency in 1824 only through a "corrupt bargain"; a Jackson victory promised to rectify this betrayal of the popular will.[43][44]
Although slavery was not a major issue in Jackson's rise to the presidency,[38] it did sometimes factor into opposition to the Second Bank, specifically among those in the South who were suspicious of how augmented federal power at the expense of the states might affect the legality of slavery. Democrat Nathaniel Macon remarked, "If Congress can make banks, roads and canals under the Constitution, they can free any slave in the United States."[45] In 1820, John Tyler of Virginia wrote that "if Congress can incorporate a bank, it might emancipate a slave".[46]
Jackson was both the champion and beneficiary of the revival of the Jeffersonian North–South alliance.[47][48][49] The Jacksonian movement reasserted the Old Republican precepts of limited government, strict construction, and state sovereignty.[38] Federal institutions that conferred privileges producing "artificial inequality" would be eliminated through a return to strict constructionism.[50] The "planter of the South and the plain Republican of the North"[51] would provide the support, with the aid of universal white male suffrage.[52] In the end, Jackson won the election decisively, taking 56 percent of the popular vote and 68 percent of the electoral vote.[53]
The Jacksonian coalition had to contend with a fundamental incompatibility between its hard money and paper money factions, for which reason Jackson’s associates never offered a platform on banking and finance reform,[54][55] because to do so "might upset Jackson's delicately balanced coalition".[55] Jackson and other advocates of hard money believed that paper money was part of "a corrupting and demoralizing system that made the rich richer, and the poor poorer". Gold and silver was the only way of having a "fair and stable" currency.[56] The aversion to paper money went back before the American Revolution. Inflation caused during the Revolutionary War by printing enormous amounts of paper money added to the distrust, and opposition to it was a major reason for Hamilton's difficulties in securing the charter of the First Bank of the United States.[57] Supporters of soft money tended to want easy credit.[58] Aspiring entrepreneurs, a number of them on the cotton frontier in the American southwest, resented the Bank not because it printed paper money, but because it did not print more and loan it to them.[59] Banks have to lend more money than they take in. When banks lend money, new money is actually created, which is called "credit". This money has to be paper; otherwise, a bank can only lend as much as it takes in and hence new currency cannot be created out of nothing. Paper money was therefore necessary to grow the economy. Banks making too many loans would print an excess of paper money and deflate the currency. This would lead to lenders demanding that the banks take back their devalued paper in exchange for specie, as well as debtors trying to pay off loans with the same deflated currency, seriously disrupting the economy.[60]
Because of the failure to emphasize the distinction between hard money and paper money, as well as the Bank's popularity, the Second Bank of the United States was not a major issue in the 1828 elections.[61][62] In fact, Biddle voted for Jackson in the election.[63] Jackson himself, though naturally averse to the Bank, had recommended the establishment of a branch in Pensacola. He also signed a certificate with recommendations for president and cashier of the branch in Nashville. The Bank had largely recovered in the public eye since the Panic of 1819 and had grown to be accepted as a fact of life.[64] Its role in managing the nation's fiscal affairs was central. The Bank printed much of the nation's paper money, which made it a target for supporters of hard money, while also restricting the activities of smaller banks, which created some resentment from those who wanted easy credit. As of 1830, the Bank had $50 million in specie in reserve, approximately half the value of its paper currency. It tried to ensure steady growth by forcing state-chartered banks to keep specie reserves. This meant that smaller banks lent less money, but that their notes were more reliable.[65] Jackson would not publicly air his grievances with the B.U.S. until December 1829.[66]
Prelude to war[edit]
Initial attitudes[edit]
When Jackson entered the White House in March 1829, dismantling the Bank was not part of his reform agenda. Although the President harbored an antipathy toward all banks, several members of his initial cabinet advised a cautious approach when it came to the B.U.S. Throughout 1829, Jackson and his close advisor, William Berkeley Lewis, maintained cordial relations with B.U.S. administrators, including Biddle, and Jackson continued to do business with the B.U.S. branch bank in Nashville.[67][68][69]
The Second Bank's reputation in the public eye partially recovered throughout the 1820s as Biddle managed the Bank prudently during a period of economic expansion. Some of the animosity left over from the Panic of 1819 had diminished, though pockets of anti-B.U.S. sentiment persisted in some western and rural locales.[70][71] According to historian Bray Hammond, "Jacksonians had to recognize that the Bank's standing in public esteem was high."[72]
Unfortunately for Biddle, there were rumors that the Bank had interfered politically in the election of 1828 by supporting Adams. B.U.S. branch offices in Louisville, Lexington, Portsmouth, Boston, and New Orleans, according to anti-Bank Jacksonians, had loaned more readily to customers who favored Adams, appointed a disproportionate share of Adams men to the Bank's board of directors, and contributed Bank funds directly to the Adams campaign. Some of these allegations were unproven and even denied by individuals who were loyal to the President, but Jackson continued to receive news of the Bank's political meddling throughout his first term.[73] To defuse a potentially explosive political conflict, some Jacksonians encouraged Biddle to select candidates from both parties to serve as B.U.S. officers, but Biddle insisted that only one's qualifications for the job and knowledge in the affairs of business, rather than partisan considerations, should determine hiring practices.[74] In January 1829, John McLean wrote to Biddle urging him to avoid the appearance of political bias in light of allegations of the Bank interfering on behalf of Adams in Kentucky. Biddle responded that the "great hazard of any system of equal division of parties at a board is that it almost inevitably forces upon you incompetent or inferior persons in order to adjust the numerical balance of directors".[75]
By October 1829, some of Jackson’s closest associates, especially Secretary of State Martin Van Buren, were developing plans for a substitute national bank. These plans may have reflected a desire to transfer financial resources from Philadelphia to New York and other places.[76] Biddle carefully explored his options for persuading Jackson to support recharter.[77] He approached Lewis in November 1829 with a proposal to pay down the national debt. Jackson welcomed the offer and personally promised Biddle he would recommend the plan to Congress in his upcoming annual address, but emphasized that he had doubts as to the Bank's constitutionality. This left open the possibility that he could stymie the renewal of the Bank's charter should he win a second term.[78][79][80]
Annual address to Congress, December 1829[edit]
In his annual address to Congress on December 8, 1829,[81] Jackson praised Biddle's debt retirement plan, but advised Congress to take early action on determining the Bank's constitutionality and added that the institution had "failed in the great end of establishing a uniform and sound currency". He went on to argue that if such an institution was truly necessary for the United States, its charter should be revised to avoid constitutional objections.[66][82] Jackson suggested making it a part of the Treasury Department.[83]
Many historians agree that the claim regarding the Bank’s currency was factually untrue.[66][84][85][86][87] According to historian Robert V. Remini, the Bank exercised "full control of credit and currency facilities of the nation and adding to their strength and soundness".[66] The Bank's currency circulated in all or nearly all parts of the country.[83] Jackson's statements against the Bank were politically potent in that they served to "discharge the aggressions of citizens who felt injured by economic privilege, whether derived from banks or not".[88] Jackson’s criticisms were shared by "anti-bank, hard money agrarians"[89] as well as eastern financial interests, especially in New York City, who resented the national bank's restrictions on easy credit.[90][91] They claimed that by lending money in large amounts to wealthy well-connected speculators, it restricted the possibility for an economic boom that would benefit all classes of citizens.[59] After Jackson made these remarks, the Bank's stock dropped due to the sudden uncertainty over the fate of the institution.[92]
A few weeks after Jackson's address, Biddle began a multi-year, interregional public relations campaign designed to secure a new Bank charter. He helped finance and distribute thousands of copies of pro-B.U.S. articles, essays, pamphlets, philosophical treatises, stockholders' reports, congressional committee reports, and petitions.[93] One of the first orders of business was to work with pro-B.U.S. Jacksonians and National Republicans in Congress to rebut Jackson's claims about the Bank's currency. A March 1830 report authored by Senator Samuel Smith of Maryland served this purpose. This was followed in April by a similar report written by Representative George McDuffie of South Carolina. Smith's report stated that the B.U.S. provided "a currency as safe as silver; more convenient, and more valuable than silver, which ... is eagerly sought in exchange for silver".[94][95] This echoed the arguments of Calhoun during the charter debates in 1816.[96] After the release of these reports, Biddle went to the Bank's board to ask for permission to use some of the Bank's funds for printing and dissemination. The board, which was composed of Biddle and like-minded colleagues, agreed.[97] Another result of the reports was that the Bank's stock rose following the drop that it experienced from Jackson's remarks.[98]
.jpg)
In spite of Jackson's address, no clear policy towards the Bank emerged from the White House. Jackson’s cabinet members were opposed to an overt attack on the Bank. The Treasury Department maintained normal working relations with Biddle, whom Jackson reappointed as a government director of the Bank.[99] Lewis and other administration insiders continued to have encouraging exchanges with Biddle, but in private correspondence with close associates, Jackson repeatedly referred to the institution as being "a hydra of corruption" and "dangerous to our liberties".[100] Developments in 1830 and 1831 temporarily diverted anti-B.U.S. Jacksonians from pursuing their attack on the B.U.S. Two of the most prominent examples were the Nullification Crisis and the Peggy Eaton Affair.[101][102] These struggles led to Vice President Calhoun's estrangement from Jackson and eventual resignation,[102][103] the replacement of all of the original cabinet members but one, as well as the development of an unofficial group of advisors separate from the official cabinet that Jackson's opponents began to call his "Kitchen Cabinet". Jackson's Kitchen Cabinet, led by the Fourth Auditor of the Treasury Amos Kendall and Francis P. Blair, editor of the Washington Globe, the state-sponsored propaganda organ for the Jacksonian movement, helped craft policy, and proved to be more anti-Bank than the official cabinet.[104][105][106]
Annual address to Congress, December 1830[edit]
In his second annual address to Congress on December 7, 1830, the president again publicly stated his constitutional objections to the Bank's existence.[107][108] He called for a substitute national bank that would be wholly public with no private stockholders. It would not engage in lending or land purchasing, retaining only its role in processing customs duties for the Treasury Department.[109][110][111] The address signaled to pro-B.U.S. forces that they would have to step up their campaign efforts.[77][112]
On February 2, 1831, while National Republicans were formulating a recharter strategy, Jacksonian Senator Thomas Hart Benton of Missouri launched an attack against the legitimacy of the Bank on the floor of the Senate, demanding an open debate on the recharter issue. He denounced the Bank as a "moneyed tribunal" and argued for "a hard money policy against a paper money policy".[113][114] After the speech was over, National Republican Senator Daniel Webster of Massachusetts called for a vote to end discussions on the Bank. It succeeded by a vote of 23 to 20, closer than he would have liked. According to Benton, the vote tally was "enough to excite uneasiness but not enough to pass the resolution".[114] The Globe, which was vigorously anti-B.U.S., published Benton's speech, earning Jackson's praise. Shortly after, the Globe announced that the President intended to stand for reelection.[114][105][106]
Recharter[edit]
Post-Eaton cabinet and compromise efforts[edit]
After replacing most of his original cabinet members, Jackson included two Bank-friendly executives in his new official cabinet: Secretary of State Edward Livingston of Louisiana and Secretary of the Treasury Louis McLane of Delaware.[115][116]
.jpg)
McLane, a confidant of Biddle,[117][118] impressed Jackson as a forthright and principled moderate on Bank policy. Jackson called their disagreements an "honest difference of opinion" and appreciated McLane's "frankness".[119] The Treasury Secretary's goal was to ensure that the B.U.S. survived Jackson’s presidency, even in a diminished condition.[120] He secretly worked with Biddle to create a reform package. The product presented to Jackson included provisions through which the federal government would reduce operations and fulfill one of Jackson's goals of paying down the national debt by March 1833. The debt added up to approximately $24 million, and McLane estimated that it could be paid off by applying $8 million through the sale of government stock in the Bank plus an additional $16 million in anticipated revenue. The liquidation of government stock would necessitate substantial changes to the Bank's charter, which Jackson supported. After the liquidation of the debt, future revenues could be applied to funding the military. Another part of McLane's reform package involved selling government lands and distributing the funds to states, a measure consistent with Jackson's overall belief in reducing the operations of the central government. With this accomplished, the administration would permit re-authorization of the national bank in 1836. In return, McLane asked that Jackson not mention the Bank in his annual address to Congress.[121] Jackson enthusiastically accepted McLane's proposal, and McLane personally told Biddle about his success. Biddle stated that he would have preferred that Jackson, rather than remaining silent on the question of recharter, would have made a public statement declaring that recharter was a matter for Congress to decide. Nonetheless, he agreed to the overall plan.[122]
These reforms required a rapprochement between Jackson and Biddle on the matter of recharter, with McLane and Livingston acting as liaisons.[109] The President insisted that no bill arise in Congress for recharter in the lead up to his reelection campaign in 1832, a request to which Biddle assented. Jackson viewed the issue as a political liability—recharter would easily pass both Houses with simple majorities—and as such, would confront him with the dilemma of approving or disapproving the legislation ahead of his reelection. A delay would obviate these risks.[123] Jackson remained unconvinced of the Bank's constitutionality.[124]
Annual address to Congress, December 1831[edit]
Jackson acceded to McLane's pleas for the upcoming annual address to Congress in December, assuming that any efforts to recharter the Bank would not begin until after the election.[125] McLane would then present his proposals for reform and delay of recharter at the annual Treasury Secretary's report to Congress shortly thereafter.[118][126]
Despite McLane's attempts to procure a modified Bank charter,[127] Attorney General Roger B. Taney, the only member of Jackson's cabinet at the time who was vehemently anti-B.U.S., predicted that ultimately Jackson would never relinquish his desire to destroy the national bank.[126][128] Indeed, he was convinced that Jackson had never intended to spare the Bank in the first place.[129] Jackson, without consulting McLane, subsequently edited the language in the final draft after considering Taney’s objections. In his December 6 address, Jackson was non-confrontational, but due to Taney's influence, his message was less definitive in its support for recharter than Biddle would have liked, amounting to merely a reprieve on the Bank’s fate.[125][129][130] The following day, McLane delivered his report to Congress. The report praised the Bank’s performance, including its regulation of state banks,[131] and explicitly called for a post-1832 rechartering of a reconfigured government bank.[125][132]
The enemies of the Bank were shocked and outraged by both speeches.[120][129] The Jacksonian press, disappointed by the president’s subdued and conciliatory tone towards the Bank,[123] launched fresh and provocative assaults on the institution.[133] McLane’s speech, despite its call for radical modifications and delay in recharter,[121] was widely condemned by Jacksonians. They described it as "Hamiltonian" in character, accused it of introducing "radical modifications" to existing Treasury policy and attacked it as an assault on democratic principles. For example, Representative Churchill C. Cambreleng wrote, "The Treasury report is as bad as it can possibly be—a new version of Alexander Hamilton's reports on a National Bank and manufacturers, and totally unsuited to this age of democracy and reform." Secretary of the Senate Walter Lowrie described it as "too ultra federal".[134] The Globe refrained from openly attacking Secretary McLane, but in lieu of this, reprinted hostile essays from anti-Bank periodicals.[125][120][135] After this, McLane secretly tried to have Blair removed from his position as editor of the Globe. Jackson found out about this after Blair offered to resign. He assured Blair that he had no intention of replacing him. Troubled by accusations that he had switched sides, Jackson said, "I had no temporizing policy in me."[135] Although he did not fire McLane, he kept him at a greater distance.[136] Taney's influence meanwhile continued to grow, and he became the only member of the President's official cabinet to be admitted to the inner circle of advisors in the Kitchen Cabinet.[137]
National Republican Party offensive[edit]
National Republicans continued to organize in favor of recharter.[138] Within days of Jackson's address, party members gathered at a convention on December 16, 1831, and nominated Senator Clay for president. Their campaign strategy was to defeat Jackson in 1832 on the Bank re-authorization issue.[133][138][139] To that end, Clay helped introduce recharter bills in both the House and Senate.[140]
Clay and Massachusetts Senator Daniel Webster warned Americans that if Jackson won reelection, he would abolish the Bank.[141] They felt secure that the B.U.S. was sufficiently popular among voters that any attack on it by the President would be viewed as an abuse of executive power. The National Republican leadership aligned themselves with the Bank not so much because they were champions of the institution, but more so because it offered what appeared to be the perfect issue on which to defeat Jackson.[133][139]
Administration figures, among them McLane, were wary of issuing ultimatums that would provoke anti-B.U.S. Jacksonians.[77][142] Biddle no longer believed that Jackson would compromise on the Bank question, but some of his correspondents who were in contact with the administration, including McDuffie, convinced the Bank president that Jackson would not veto a recharter bill. McLane and Lewis, however, told Biddle that the chances of recharter would be greater if he waited until after the election of 1832. "If you apply now," McLane wrote Biddle, "you assuredly will fail,—if you wait, you will as certainly succeed."[140] Most historians have argued that Biddle reluctantly supported recharter in early 1832 due to political pressure from Clay and Webster,[139][140][143] though the Bank president was also considering other factors. Thomas Cadwalader, a fellow B.U.S. director and close confidant of Biddle, recommended recharter after counting votes in Congress in December 1831. In addition, Biddle had to consider the wishes of the Bank's major stockholders, who wanted to avoid the uncertainty of waging a recharter fight closer to the expiration of the charter. Indeed, Jackson had predicted in his first annual message of 1829 that the Bank's stockholders would submit an early application to Congress.[144]
On January 6, 1832, bills for Bank recharter were introduced in both houses of Congress.[126][140] In the House of Representatives, McDuffie, as Chairman of the Ways and Means Committee, guided the bill to the floor.[145] Fellow Jacksonian George M. Dallas introduced the bill into the Senate.[139] Clay and Webster secretly intended to provoke a veto, which they hoped would damage Jackson and lead to his defeat.[139][146] They did however assure Biddle that Jackson would not veto the bill so close to the 1832 election. The proposals included some limited reforms by placing restrictions on the Bank's powers to own real estate and create new branches, give Congress the ability to prevent the Bank from issuing small notes, and allow the president to appoint one director to each branch of the Bank.[139]
Jacksonian counter-offensive[edit]
The alliance between Biddle and Clay triggered a counter-offensive by anti-B.U.S. forces in Congress and the executive branch.[139][147] Jackson assembled an array of talented and capable men as allies. Most notably, these were Thomas Hart Benton in the Senate and future president James K. Polk, member of the House of Representatives from Tennessee, as well as Blair, Treasury Auditor Kendall, and Attorney General Roger Taney in his cabinets.[148] On February 23, 1832, Jacksonian Representative Augustin Smith Clayton of Georgia introduced a resolution to investigate allegations that the Bank had violated its charter. The intent was to put pro-Bank forces on the defensive.[149][150] These delaying tactics could not be blocked indefinitely since any attempt to obstruct the inquiry would raise suspicions among the public. Many legislators benefited from the largesse supplied by Bank administrators.[126][149][151] The plan was approved, and a bipartisan committee was sent to Philadelphia to look into the matters. Clayton's committee report, once released, helped rally the anti-Bank coalition.[148]
The months of delay in reaching a vote on the recharter measure served ultimately to clarify and intensify the issue for the American people.[152] Jackson’s supporters benefited in sustaining these attacks on the Bank[153] even as Benton and Polk warned Jackson that the struggle was "a losing fight" and that the recharter bill would certainly pass.[152] Biddle, working through an intermediary, Charles Jared Ingersoll, continued to lobby Jackson to support recharter. On February 28, Cambreleng expressed hope that if the recharter bill passed, the President would "send it back to us with his veto—an enduring moment of his fame". The following day, Livingston predicted that if Congress passed a bill that Jackson found acceptable, the President would "sign it without hesitation". In the words of historian Bray Hammond, "This was a very large 'if,' and the secretary came to realize it."[154] Jackson decided that he had to destroy the Bank and veto the recharter bill. Many moderate Democrats, including McLane, were appalled by the perceived arrogance of the pro-Bank forces in pushing through early recharter and supported his decision. Indeed, Livingston was alone in the cabinet, for only he opposed a veto, and Jackson ignored him. Taney's influence grew immensely during this period, and Cambreleng told Van Buren that he was "the only efficient man of sound principles" in Jackson's official cabinet.[155]
Biddle traveled to Washington, D.C. to personally conduct the final push for recharter.[156][157] For the past six months he had worked in concert with B.U.S. branch managers to elicit signatures from citizens for pro-B.U.S. petitions that would be aired in Congress.[158] Congressmen were encouraged to write pro-Bank articles, which Biddle printed and distributed nationally.[159] Francis Blair at the Globe reported these efforts by the B.U.S. president in the legislative process as evidence of the Bank’s corrupting influence on free government.[156] After months of debate and strife, pro-B.U.S. National Republicans in Congress finally prevailed, winning reauthorization of the Bank's charter in the Senate on June 11 by a vote of 28 to 20.[160] The House was dominated by Democrats, who held a 141–72 majority, but it voted in favor of the recharter bill on July 3 by a tally of 107 to 85. Many Northern Democrats joined the anti-Jacksonians in supporting recharter.[161]
The final bill sent to Jackson's desk contained modifications of the Bank's original charter that were intended to assuage many of the President's objections. The Bank would have a new fifteen-year charter; would report to the Treasury Department the names of all of the Bank's foreign stockholders, including the amount of shares they owned; would face stiff penalties if it held onto property for longer than five years, and would not issue notes in denominations of less than twenty dollars. Jacksonians argued that the Bank often cheated small farmers by redeeming paper with discounted specie, meaning that a certain amount was deducted. They alleged that this was unfair to farmers and allowed creditors to profit without creating tangible wealth, while a creditor would argue that he was performing a service and was entitled to profit from it.[162] Biddle joined most observers in predicting that Jackson would veto the bill.[160] Not long after, Jackson became ill. Van Buren arrived in Washington on July 4, and went to see Jackson, who said to him, "The Bank, Mr. Van Buren, is trying to kill me, but I shall kill it."[159][163]
Veto[edit]
Contrary to the assurances Livingston had been rendering Biddle, Jackson determined to veto the recharter bill. The veto message was crafted primarily by members of the Kitchen Cabinet, specifically Taney, Kendall, and Jackson's nephew and aide Andrew Jackson Donelson. McLane denied that he had any part in it.[164] Jackson officially vetoed the legislation on July 10, 1832,[158] delivering a carefully crafted message to Congress and the American people.[165] One of the most "popular and effective documents in American political history",[166] Jackson outlined a major readjustment to the relative powers of the government branches.[167]
The executive branch, Jackson averred, when acting in the interests of the American people,[168] was not bound to defer to the decisions of the Supreme Court, nor to comply with legislation passed by Congress.[169][170] He believed that the Bank was unconstitutional and that the Supreme Court, which had declared it constitutional, did not have the power to do so without the "acquiesence of the people and the states".[171] Further, while previous presidents had used their veto power, they had only done so when objecting to the constitutionality of bills. By vetoing the recharter bill and basing most of his reasoning on the grounds that he was acting in the best interests of the American people, Jackson greatly expanded the power and influence of the president.[172] He characterized the B.U.S. as merely an agent of the executive branch, acting through the Department of the Treasury. As such, declared Jackson, Congress was obligated to consult the chief executive before initiating legislation affecting the Bank. Jackson had claimed, in essence, legislative power as president.[173] Jackson gave no credit to the Bank for stabilizing the country's finances[166] and provided no concrete proposals for a single alternate institution that would regulate currency and prevent over-speculation—the primary purposes of the B.U.S.[166][174][175] The practical implications of the veto were enormous. By expanding the veto, Jackson claimed for the president the right to participate in the legislative process. In the future, Congress would have to consider the president's wishes when deciding on a bill.[172]
The veto message was "a brilliant political manifesto"[176] that called for the end of monied power in the financial sector and a leveling of opportunity under the protection of the executive branch.[177] Jackson perfected his anti-Bank themes. He stated that one fifth of the Bank's stockholders were foreign and that, because states were only allowed to tax stock owned by their own citizens, foreign citizens could more easily accumulate it.[178] He pitted the idealized "plain republican" and the "real people"—virtuous, industrious and free[179][180]—against a powerful financial institution—the "monster" Bank,[181] whose wealth was purportedly derived from privileges bestowed by corrupt political and business elites.[69][182] Jackson's message distinguished between "equality of talents, of education, or of wealth", which could never be achieved, from "artificial distinctions", which he claimed the Bank promoted.[183] Jackson cast himself in populist terms as a defender of original rights, writing:
To those who believed that power and wealth should be linked, the message was unsettling. Daniel Webster charged Jackson with promoting class warfare.[174][185][186] Webster was at around this time annually pocketing a small salary for his "services" in defending the Bank, although it was not uncommon at the time for legislators to accept monetary payment from corporations in exchange for promoting their interests.[187]
In presenting his economic vision,[188] Jackson was compelled to obscure the fundamental incompatibility of the hard-money and easy credit wings of his party.[189] On one side were Old Republican idealists who took a principled stand against all paper credit in favor of metallic money.[190] Jackson's message criticized the Bank as a violation of states' rights, stating that the federal government's "true strength consists in leaving individuals and States as much as possible to themselves."[184] Yet the bulk of Jackson’s supporters came from easy lending regions that welcomed banks and finance, as long as local control prevailed.[191] By diverting both groups in a campaign against the national bank in Philadelphia, Jackson cloaked his own hard-money predilections, which, if adopted, would be as fatal to the inflation favoring Jacksonians as the B.U.S. was purported to be.[192]
Despite some misleading or intentionally vague statements on Jackson's part in his attacks against the Bank, some of his criticisms are considered justifiable by certain historians. It enjoyed enormous political and financial power, and there were no practical limits on what Biddle could do. It used loans and "retainer's fees", such as with Webster, to influence congressmen. It assisted certain candidates for offices over others.[193] It also regularly violated its own charter. Senator George Poindexter of Mississippi received a $10,000 loan from the Bank after supporting recharter. Several months later, he received an additional loan of $8,000 despite the fact that the original loan had not been paid. This process violated the Bank's charter.[194]
Too late, Clay "realized the impasse into which he had maneuvered himself, and made every effort to override the veto".[195] In a speech to the Senate, Webster rebuked Jackson for maintaining that the president could declare a law unconstitutional that had passed Congress and been approved by the Supreme Court. Immediately after Webster spoke, Clay arose and strongly criticized Jackson for his unprecedented expansion, or "perversion", of the veto power. The veto was intended to be used in extreme circumstances, he argued, which was why previous presidents had used it rarely if at all. Jackson, however, routinely used the veto to allow the executive branch to interfere in the legislative process, an idea Clay thought "hardly reconcilable with the genius of representative government". Benton replied by criticizing the Bank for being corrupt and actively working to influence the 1832 election. Clay responded by sarcastically alluding to a brawl that had taken place between Thomas Benton and his brother Jesse against Andrew Jackson in 1813. Benton called the statement an "atrocious calumny". Clay demanded that he retract his statements. Benton refused and instead repeated them. A shouting match ensued in which it appeared the two men might come to blows. Order was eventually restored and both men apologized to the Senate, although not to each other, for their behaviors. The pro-Bank interests failed to muster a supermajority—achieving only a simple majority of 22–19 in the Senate[196]—and on July 13, 1832, the veto was sustained.[197]
The election of 1832[edit]
.jpg)
Jackson's veto immediately made the Bank the main issue of the 1832 election. With four months remaining until the November general election, both parties launched massive political offensives with the Bank at the center of the fight.[198][199] Jacksonians framed the issue as a choice between Jackson and "the People" versus Biddle and "the Aristocracy",[198][200] while muting their criticisms of banking and credit in general.[201] "Hickory Clubs" organized mass rallies, while the pro-Jackson press "virtually wrapped the country in anti-Bank propaganda".[202] This, despite the fact that two-thirds of the major newspapers supported Bank recharter.[203][204]
The National Republican press countered by characterizing the veto message as despotic and Jackson as a tyrant.[205] Presidential hopeful Henry Clay vowed "to veto Jackson" at the polls.[157][206] Overall, the pro-Bank analysis tended to soberly enumerate Jackson's failures, lacking the vigor of the Democratic Party press.[207] Biddle mounted an expensive drive to influence the election, providing Jackson with copious evidence to characterize Biddle as an enemy of republican government and American liberty through meddling in politics. Some of Biddle's aides brought this to his attention, but he chose not to take their advice.[201] He also had tens of thousands of Jackson's veto messages circulated throughout the country, believing that those who read it would concur in his assessment that it was in essence "a manifesto of anarchy" addressed directly to a "mob".[208] "The campaign is over, and I think we have won the victory", Clay said privately on July 21.[209]
Jackson's campaign benefited from superior organization skills. The first ever Democratic Party convention took place in May 1832. It did not officially nominate Jackson for president, but, as Jackson wished, nominated Martin Van Buren for vice president.[210] Jackson's supporters hosted parades and barbecues, and erected hickory poles as a tribute to Jackson, whose nickname was Old Hickory. Jackson typically chose not to attend these events, in keeping with the tradition that candidates not actively campaign for office. Nevertheless, he often found himself swarmed by enthusiastic mobs. The National Republicans, meanwhile, developed popular political cartoons, some of the first to be employed in the nation. One such cartoon was entitled "King Andrew the First". It depicted Jackson in full regal dress, featuring a scepter, ermine robe, and crown. In his left hand he holds a document labelled "Veto" while standing on a tattered copy of the Constitution.[211] Clay was also damaged by the candidacy of William Wirt of the Anti-Masonic Party, which took National Republican votes away in crucial states, mostly in the northeast. In the end, Jackson won a major victory with 54.6% of the popular vote, and 219 of the 286 electoral votes.[212] In Alabama, Georgia, and Mississippi, Jackson won with absolutely no opposition. He also won the states of New Hampshire and Maine, fracturing the traditional Federalist/National Republican dominance in New England.[213] The House also stood solidly for Jackson. The 1832 elections provided it with 140 pro-Jackson members compared to 100 anti-Jacksons.[214]
Jackson's dismantling of the B.U.S.[edit]
Renewal of war and 1832 address to Congress[edit]
Jackson regarded his victory as a popular mandate[215] to eliminate the B.U.S. before its 20-year term ended in 1836.[216][217] During the final phase of the 1832 election campaign, Kendall and Blair had convinced Jackson that the transfer of the federal deposits—20% of the Bank's capital—into private banks friendly to the administration would be prudent.[218] Their rationale was that Biddle had used the Bank's resources to support Jackson's political opponents in the 1824 and 1828 elections, and additionally, that Biddle might induce a financial crisis in retaliation for Jackson's veto and reelection.[219] The President declared the Bank "Scotched, not dead".[217][220]
In his December 1832 State of the Union Address, Jackson aired his doubts to Congress whether the B.U.S. was a safe depository for "the people's money" and called for an investigation.[217][220] In response, the Democratic-controlled House conducted an inquiry, submitting a divided committee report (4–3) that declared the deposits perfectly safe.[221] The committee's minority faction, under Jacksonian James K. Polk, issued a scathing dissent, but the House approved the majority findings in March 1833, 109–46.[220] Jackson, incensed at this "cool" dismissal, decided to proceed as advised by his Kitchen Cabinet to remove the B.U.S. funds by executive action alone.[222] The administration was temporarily distracted by the Nullification Crisis, which reached its peak intensity from the fall of 1832 through the winter of 1833.[223] With the crisis over, Jackson could turn his attention back to the Bank.[217]
Search for a Treasury secretary[edit]
Kendall and Taney began to seek cooperative state banks which would receive the government deposits. That year, Kendall went on a "summer tour" in which he found seven institutions friendly to the administration in which it could place government funds. The list grew to 22 by the end of the year.[224] Meanwhile, Jackson sought to prepare his official cabinet for the coming removal of the Bank's deposits.[221][225] Vice President Martin Van Buren tacitly approved the maneuver, but declined to publicly identify himself with the operation, for fear of compromising his anticipated presidential run in 1836.[226][227] Treasury Secretary McLane balked at the removal, saying that tampering with the funds would cause "an economic catastrophe", and reminded Jackson that Congress had declared the deposits secure.[228] Jackson subsequently shifted both pro-Bank cabinet members to other posts: McLane to the Department of State, and Livingston to Europe, as U.S. Minister to France.[229] The President replaced McLane with William J. Duane, a reliable opponent of the Bank from Pennsylvania.[229] Duane was a distinguished lawyer from Philadelphia whose father, also William Duane, had edited the Philadelphia Aurora, a prominent Jeffersonian newspaper. Duane's appointment, aside from continuing the war against the Second Bank, was intended to be a sign of the continuity between Jeffersonian ideals and Jacksonian democracy. "He's a chip of the old block, sir", Jackson said of the younger Duane.[230] McLane met Duane in December 1832 and urged him to accept appointment as Treasury Secretary. He sent a letter of acceptance to Jackson on January 13, 1833, and was sworn in on June 1.[231]
By the time Duane was appointed, Jackson and his Kitchen Cabinet were well-advanced in their plan to remove the deposits.[226][229] Despite their agreement on the Bank issue, Jackson did not seriously consider appointing Taney to the position. He and McLane had disagreed strongly on the issue, and his appointment would have been interpreted as an insult to McLane, who "vigorously opposed" the idea of Taney being appointed as his replacement.[232]
Under the Bank charter terms of 1816, the U.S. Secretary of the Treasury was empowered, with Congress, to make all decisions regarding the federal deposits.[233] On his first day at his post, Secretary Duane was informed by Kendall, who was in name his subordinate in the Treasury Department, that Duane would be expected to defer to the President on the matter of the deposits.[222][234][235] Duane demurred, and when Jackson personally intervened to explain his political mandate[215] to ensure the Bank’s demise,[236] his Treasury Secretary informed him that Congress should be consulted to determine the Bank's fate.[237][238] Van Buren had cautiously supported McLane's proposal to delay the matter until January 1, 1834. Jackson declined. To Van Buren, he wrote, "Therefore to prolong the deposits until after the meeting of Congress would be to do the very act [the B.U.S.] wishes, that is, to have it in its power to distress the community, destroy the state Banks, and if possible to corrupt congress and obtain two thirds, to recharter the Bank." Van Buren capitulated.[239]
Jackson's position ignited protest not only from Duane but also McLane and Secretary of War Lewis Cass.[240] After weeks of clashing with Duane over these prerogatives, Jackson decided that the time had come to remove the deposits.[241][242] On September 18, Lewis asked Jackson what he would do in the event that Congress passed a joint resolution to restore the deposits, Jackson replied, "Why, I would veto it." Lewis then asked what he would do if Congress overrode his veto. "Under such circumstances," he said, standing up, "then, sir, I would resign the presidency and return to the Hermitage." The following day, Jackson sent a messenger to learn whether Duane had come to a decision. Duane asked to have until the 21st, but Jackson, wishing to act immediately, sent Andrew Donelson to tell him that this was not good enough, and that he would announce his intention to summarily remove the deposits the next day in Blair's Globe, with or without Duane's consent. Sure enough, the following day, a notice appeared in the Globe stating that the deposits would be removed starting on or before October 1.[243] Secretary Duane had promised to resign if he and Jackson could not come to an agreement. When questioned by Jackson about this earlier promise, he said, "I indescreetly said so, sir; but I am now compelled to take this course." Under attack from the Globe,[244] Duane was dismissed by Jackson days later, on September 22, 1833.[237][241][245] Two days later, McLane and Cass, feeling Jackson had ignored their advice, met with the President and suggested that they resign. They eventually agreed to stay on the condition that they would attend to their own departments and not say anything publicly which would bolster the Bank's standing.[240]
Attorney General Taney was immediately made Secretary of the Treasury[237][246] in order to authorize the transfers, and he designated Kendall as special agent in charge of removal. With the help of Navy Secretary Levi Woodbury, they drafted an order dated September 25 declaring an official switch from national to deposit banking. Beginning on October 1, all future funds would be placed in selected state banks, and the government would draw on its remaining funds in the B.U.S. to cover operating expenses until those funds were exhausted. In case the B.U.S. retaliated, the administration decided to secretly equip a number of the state banks with transfer warrants, allowing money to be moved to them from the B.U.S. These were to be used only to counteract any hostile behavior from the B.U.S.[247]
Removal of the deposits and panic of 1833–34[edit]
Taney, in his capacity as an interim treasury secretary, initiated the removal of the Bank's public deposits, spread out over four quarterly installments. Most of the state banks that were selected to receive the federal funds had political and financial connections with prominent members of the Jacksonian Party. Opponents referred to these banks derisively as "pet banks" since many of them financed pet projects conceived by members of the Jackson administration.[248] Taney attempted to move tactfully in the process of carrying out the removals so as not to provoke retaliation by the B.U.S. or eviscerate the national bank's regulatory influence too suddenly. He presented five state-charted "pet" banks with drafts endorsed by the U.S. Treasury totaling $2.3 million. If Biddle presented any of the state banks with notes and demanded specie as payment, the banks could present him with the drafts to remove the deposits from the Bank and protect their liquidity. However, one of the banks drew prematurely on B.U.S. reserves for speculative ventures.[249] At least two of the deposit banks, according to a Senate report released in July 1834, were caught up in a scandal involving Democratic Party newspaper editors, private conveyance firms, and elite officers in the Post Office Department.[250] Jackson predicted that within a matter of weeks, his policy would make "Mr. Biddle and his Bank as quiet and harmless as a lamb".[251]
Biddle urged the Senate to pass joint resolutions for the restoration of the deposits. He planned to use "external pressure" to compel the House to adopt the resolutions. Clay demurred. Historian Ralph C.H. Catterall writes, "Just as in 1832 Biddle cared 'nothing for the campaign,' so in 1833 Henry Clay cared little or nothing for the bank." Webster and John C. Calhoun, who was now a senator, broke away from Clay. Webster drafted a plan to charter the Bank for 12 years, which received support from Biddle, but Calhoun wanted a 6 year charter, and the men could not come to an agreement.[252]
In the end, Biddle responded to the deposit removal controversy in ways that were both precautionary and vindictive. On October 7, 1833, Biddle held a meeting with the Bank's board members in Philadelphia. There, he announced that the Bank would raise interest rates in the coming months in order to stockpile the Bank's monetary reserves.[253] In addition, Biddle reduced discounts, called in loans, and demanded that state banks honor the liabilities they owed to the B.U.S. At least partially, this was a reasonable response to several factors that threatened the Bank's resources and continued profitability. Jackson's veto and the decreasing likelihood of obtaining a new federal charter meant that the Bank would soon have to wind up its affairs. Then there was the removal of the public deposits, congressional testimony indicating that the Jacksonians had attempted to sabotage the Bank's public image and solvency by manufacturing bank runs at branch offices in Kentucky, the responsibility of maintaining a uniform currency, the administration's goal of retiring the public debt in a short period, bad harvests, and expectations that the Bank would continue to lend to commercial houses and return dividends to stockholders.[254] "This worthy President thinks that because he has scalped Indians and imprisoned Judges, he is to have his way with the Bank. He is mistaken", Biddle declared.[251]
Yet there was also a more punitive motivation behind Biddle's policies. He deliberately instigated a financial crisis to increase the chances of Congress and the President coming together in order to compromise on a new Bank charter, believing that this would convince the public of the Bank's necessity.[255] In a letter to William Appleton on January 27, 1834, Biddle wrote:
At first, Biddle's strategy was successful. As credit tightened across the country, businesses closed and men were thrown out of work. Business leaders began to think that deflation was the inevitable consequence of removing the deposits, and so they flooded Congress with petitions in favor of recharter.[257] By December, one of the President's advisors, James Alexander Hamilton, remarked that business in New York was "really in very great distress, nay even to the point of General Bankruptcy [sic]".[258] Calhoun denounced the removal of funds as an unconstitutional expansion of executive power.[259] He accused Jackson of ignorance on financial matters.[260]
Jackson, however, believed that large majorities of American voters were behind him. They would force Congress to side with him in the event that pro-Bank congressmen attempted to impeach him for removing the deposits. Jackson, like Congress, received petitions begging him to do something to relieve the financial strain. He responded by referring them to Biddle.[261] When a New York delegation visited him to complain about problems being faced by the state's merchants, Jackson responded saying:
The men took Jackson's advice and went to see Biddle, whom they discovered was "out of town".[263] Biddle rejected the idea that the Bank should be "cajoled from its duty by any small driveling about relief to the country."[264] Not long after, it was announced in the Globe that Jackson would receive no more delegations to converse with him about money. Some members of the Democratic Party questioned the wisdom and legality of Jackson's move to terminate the Bank through executive means before its 1836 expiration. But Jackson's strategy eventually paid off as public opinion turned against the Bank.[259][265]
Origins of the Whig Party and censure of President Jackson[edit]
By the spring of 1834, Jackson's political opponents—a loosely-knit coalition of National Republicans, anti-Masons, evangelical reformers, states' rights nullifiers, and some pro-B.U.S. Jacksonians—gathered in Rochester, New York to form a new political party. They called themselves Whigs after the British party of the same name. Just as British Whigs opposed the monarchy, American Whigs decried what they saw as executive tyranny from the president.[266][267] Philip Hone, a New York merchant, may have been the first to apply the term in reference to anti-Jacksonians, and it became more popular after Clay used it in a Senate speech on April 14. "By way of metempsychosis," Blair jeered, "ancient Tories now call themselves Whigs."[266] Jackson and Secretary Taney both exhorted Congress to uphold the removals, pointing to Biddle's deliberate contraction of credit as evidence that the central bank was unfit to store the nation's public deposits.[268]
The response of the Whig-controlled Senate was to try to express disapproval of Jackson by censuring him.[269][270] Henry Clay, spearheading the attack, described Jackson as a "backwoods Caesar" and his administration a "military dictatorship".[271] Jackson retaliated by calling Clay as "reckless and as full of fury as a drunken man in a brothel".[272] On March 28, Jackson was officially censured for violating the U.S. Constitution by a vote of 26–20.[273] The reasons given were both the removal of the deposits and the dismissal of Duane.[274] The opposing parties accused one another of lacking credentials to represent the people. Jacksonian Democrats pointed to the fact that Senators were beholden to the state legislatures that selected them; the Whigs pointing out that the chief executive had been chosen by electors, and not by popular vote.[275]
The House of Representatives, controlled by Jacksonian Democrats, took a different course of action. On April 4, it passed resolutions in favor of the removal of the public deposits.[268][276] Led by Ways and Means Committee chairman James K. Polk, the House declared that the Bank "ought not to be rechartered" and that the deposits "ought not to be restored". It voted to continue allowing the deposit banks to serve as fiscal agents and to investigate whether the Bank had deliberately instigated the panic. Jackson called the passage of these resolutions a "glorious triumph", for it had essentially sealed the Bank's destruction.[277]
When House committee members, as dictated by Congress, arrived in Philadelphia to investigate the Bank, they were treated by the Bank's directors as distinguished guests. The directors soon stated, in writing, that the members must state in writing their purpose for examining the Bank's books before any would be turned over to them. If a violation of charter was alleged, the specific allegation must be stated. The committee members refused, and no books were shown to them. Next, they asked for specific books, but were told that it might take up to 10 months for these to be procured. Finally, they succeeded in getting subpoenas issued for specific books. The directors replied that they could not produce these books because they were not in the Bank's possession. Having failed in their attempt to investigate, the committee members returned to Washington.[278]
In Biddle's view, Jackson had violated the Bank's charter by removing the public deposits, meaning that the institution effectively ceased functioning as a national bank tasked with upholding the public interest and regulating the national economy. Thenceforth, Biddle would only consider the interests of the Bank's private stockholders when he crafted policy.[279] When the committee members reported their findings to the House, they recommended that Biddle and his fellow directors be arrested for "contempt" of Congress, although nothing came of the effort.[280] Nevertheless, this episode caused an even greater decline in public opinion regarding the Bank, with many believing that Biddle had deliberately evaded a congressional mandate.[281]
The Democrats did suffer some setbacks. Polk ran for Speaker of the House to replace Andrew Stevenson, who was nominated to be minister to Great Britain. After southerners discovered his connection to Van Buren, he was defeated by fellow Tennessean John Bell, a Democrat-turned-Whig who opposed Jackson's removal policy. The Whigs, meanwhile, began to point out that several of Jackson's cabinet appointees, despite having acted in their positions for many months, had yet to be formally nominated and confirmed by the Senate. For the Whigs, this was blatantly unconstitutional. The unconfirmed cabinet members, appointed during a congressional recess, consisted of McLane for Secretary of State, Benjamin F. Butler for Attorney General, and Taney for Secretary of the Treasury. McLane and Butler would likely receive confirmation easily, but Taney would definitely be rejected by a hostile Senate. Jackson had to submit all three nominations at once, and so he delayed submitting them until the last week of the Senate session on June 23. As expected, McLane and Butler were confirmed. Taney was rejected by a vote of 28–18. He resigned immediately. To replace Taney, Jackson nominated Woodbury, who, despite the fact that he also supported removal, was confirmed unanimously on June 29. Meanwhile, Biddle wrote to Webster successfully urging the Senate not to support Stevenson as minister.[282]
The Bank's final years[edit]
Demise of the Bank of the United States[edit]
The economy improved significantly in 1834. Biddle received heavy criticism for his contraction policies, including by some of his supporters, and was compelled to relax his curtailments. The Bank's Board of Directors voted unanimously in July to end all curtailments.[283][284][285] The Coinage Act of 1834 passed Congress on June 28, 1834. It had considerable bipartisan support, including from Calhoun and Webster. The purpose of the act was to eliminate the devaluation of gold in order for gold coins to keep pace with market value and not be driven out of circulation. The first Coinage Act was passed in 1792 and established a 15 to 1 ratio for gold to silver coins. Commercial rates tended towards about 15.5-1. Consequentially a $10 gold eagle was really worth $10.66 and 2/3. It was undervalued and thus rarely circulated. The act raised the ratio to 16 to 1. Jackson felt that, with the Bank prostrate, he could safely bring gold back. It was not as successful as Jackson hoped.[286] However, it did have a positive effect on the economy, as did good harvests in Europe. The result was that the recession that began with Biddle's contraction was brought to a close.[283][284] For his part, Jackson expressed his willingness to recharter the Bank or establish a new one, but first insisted that his "experiment" in deposit banking be allowed a fair trial.[287]
Censure was the "last hurrah" of the Pro-Bank defenders and soon a reaction set in. Business leaders in American financial centers became convinced that Biddle's war on Jackson was more destructive than Jackson's war on the Bank.[288][289][290] All recharter efforts were now abandoned as a lost cause.[269] The national economy following the withdrawal of the remaining funds from the Bank was booming and the federal government through duty revenues and sale of public lands was able to pay all bills. On January 1, 1835, Jackson paid off the entire national debt, the only time in U.S. history that has been accomplished.[291] The objective had been reached in part through Jackson's reforms aimed at eliminating the misuse of funds, and through the veto of legislation he deemed extravagant.[292] In December 1835, Polk defeated Bell and was elected Speaker of the House.[293]
.jpg)
On January 30, 1835, what is believed to be the first attempt to kill a sitting President of the United States occurred just outside the United States Capitol. When Jackson was leaving through the East Portico after the funeral of South Carolina Representative Warren R. Davis, Richard Lawrence, an unemployed house painter from England, tried to shoot Jackson with two pistols, both of which misfired.[294] Jackson attacked Lawrence with his cane, and Lawrence was restrained and disarmed.[295] Lawrence offered a variety of explanations for the shooting. He blamed Jackson for the loss of his job. He claimed that with the President dead, "money would be more plenty", (a reference to Jackson's struggle with the Bank) and that he "could not rise until the President fell". Finally, Lawrence told his interrogators that he was a deposed English king—specifically, Richard III, dead since 1485—and that Jackson was his clerk.[296] He was deemed insane and was institutionalized.[297] Jackson initially suspected that a number of his political enemies might have orchestrated the attempt on his life. His suspicions were never proven.[298]
In January 1837, Benton introduced a resolution to expunge Jackson's censure from the Senate record.[299] It began nearly 13 consecutive hours of debate. Finally, a vote was taken, and it was decided 25–19 to expunge the censure. Thereafter, the Secretary of the Senate retrieved the original manuscript journal of the Senate and opened it to March 28, 1834, the day that the censure was applied. He drew black lines through the text recording the censure and beside it wrote: "Expunged by order of the Senate, this 16th day of January, 1837". Jackson proceeded to host a large dinner for the "expungers".[300] Jackson left office on March 4 of that year and was replaced by Van Buren.[301] Including when taking into account the recession engineered by Biddle, the economy expanded at an unprecedented rate of 6.6% per year from 1830 to 1837.[302]
In February 1836, the Bank became a private corporation under Pennsylvania commonwealth law. This took place just weeks before the expiration of the Bank's charter. Biddle had orchestrated the maneuver in a desperate effort to keep the institution alive rather than allowing it to dissolve.[1] This managed to keep the Philadelphia branch operating at a price of nearly $6 million. In trying to keep the Bank alive, Biddle borrowed large sums of money from Europe and attempted to make money off the cotton market. Cotton prices eventually collapsed because of the depression (see below), making this business unprofitable. In 1839, Biddle submitted his resignation as Director of the B.U.S. He was subsequently sued for nearly $25 million and acquitted on charges of criminal conspiracy, but remained heavily involved in lawsuits until the end of his life.[303] The Bank suspended payment in 1839.[304] After an investigation exposed massive fraud in its operations, the Bank officially shut its doors on April 4, 1841.[305]
Speculative boom and Panic of 1837[edit]
Jackson's destruction of the B.U.S. is believed by some to have helped set in motion a series of events that would eventually culminate in a major financial crisis known as the Panic of 1837. The origins of this crisis can be traced to the formation of an economic bubble in the mid-1830s that grew out of fiscal and monetary policies passed during Jackson's second term, combined with developments in international trade that concentrated large quantities of gold and silver in the United States.[306] Among these policies and developments were the passage of the Coinage Act of 1834, actions pursued by Mexican President Antonio Lopez de Santa Anna, and a financial partnership between Biddle and Baring Brothers, a major British merchant banking house.[307] British investment in the stocks and bonds that capitalized American transportation companies, municipal governments, and state governments added to this phenomenon.[308]
Woodbury ensured that banks' specie ratios remained consistent with those of the early 1830s.[309] However, since lending was tied directly to the amount of gold and silver that banks stored in their vaults, the influx of precious metals into the United States encouraged American banks to print more paper money. The money supply and number of bank notes in circulation increased significantly in these years.[310] State-chartered financial institutions, unshackled from the regulatory oversight previously provided by the B.U.S., started engaging in riskier lending practices that fueled a rapid economic expansion in land sales, internal improvement projects, cotton cultivation, and slavery.[311] The federal government earned an average of about $2 million each year from land sales in the 1820s. This number increased to about $5 million in 1834, $15 million in 1835, and $25 million in 1836.[309] In 1836, President Jackson signed the Deposit and Distribution Act, which transferred funds from the Treasury Department’s budget surplus into various deposit banks located in the interior of the country. The treasury secretary could no longer regulate lending requirements in the deposit banks as a result of this legislation. Soon afterward, Jackson signed the Specie Circular, an executive order mandating that sales of public lands in parcels over 320 acres be paid for only in gold and silver coin. Both of these measures diverted precious metals from the Atlantic Coast to western regions, leaving the nation’s financial centers vulnerable to external shocks.[312][313]
Another major problem was that bountiful crop harvests in cotton from the United States, Egypt, and India created a supply glut.[314] The resulting drop in the price of cotton precipitated much of the damage of the financial panic. This is because cotton receipts not only gave value to many American credit instruments, but they were inextricably linked to the bubble then forming in the American Southwest (then centered in Louisiana and Mississippi).[315][316] Southern planters bought large amounts of public land and produced more cotton to try to pay off their debts. The price of cotton steadily declined during Jackson's second term. In late 1836, the Bank of England began denying credit to American cotton producers. The Bank's directors raised interest rates from three to five percent and restricted some of the open trade practices that they had previously granted to American import merchants. The directors had grown alarmed that their specie reserves had dwindled to four million pounds, which they blamed on the purchase of American securities and poor harvests that forced England to import much of its food (if food imports created a trade deficit, this could lead to specie exports). Within months, cotton prices entered a full free-fall.[317][318][319]
In March 1837, Hermann, Briggs & Company, a major cotton commission house in New Orleans, declared bankruptcy, prompting the New York bill brokerage company, J.L. & S. Joseph & Company, to do the same.[320][321] In May, New York banks suspended specie payments, meaning that they refused to redeem credit instruments in specie at full face value.[322][323] Over the next several years, domestic trade slumped, the price of banking, railroad, and insurance company stocks declined, and unemployment rose.[324] 194 of the 729 banks with charters closed their doors.[325] Thousands of people in manufacturing districts lost their jobs as credit dried up.[326][327] Farmers and planters suffered from price deflation and debt-default spirals. By the summer of 1842, eight states and the Florida territory had defaulted on their debts, which outraged international investors.[328]
Whigs and Democrats blamed each other for the crisis. The Whigs attacked Jackson's specie circular and demanded recharter of the Bank. Democrats defended the circular and blamed the panic on greedy speculators. Jackson insisted that the circular was necessary because allowing land to be purchased with paper would only fuel speculator greed more, thereby worsening the crisis. The circular, he claimed, was necessary to prevent excessive speculation.[329]
Legacy[edit]
The Bank War far from settled the status of banking in the United States. Van Buren's solution to the Panic of 1837 was to create an Independent Treasury, where public funds would be managed by government officials without assistance from banks.[330] A coalition of Whigs and conservative Democrats refused to pass the bill. It was not until 1840 that the Independent Treasury system was finally approved.[331] When Whig candidate William Henry Harrison was elected in 1840, the Whigs, who also held a majority in Congress, repealed the Independent Treasury, intending to charter a new national bank. However, Harrison died after only a month in office, and his successor, John Tyler, vetoed two bills to reestablish the Bank.[332] The nation returned to deposit banking.[333] The Independent Treasury was recreated under the Polk presidency in 1846.[332] The United States would never have another national banking system again until the Federal Reserve was established in 1913.[334]
The Bank War has proven to be a controversial subject in the scholarly community long after it took place.[334] Quite a few historians over the years have proven to be either extremely celebratory or extremely critical of Jackson's war on the Bank. However, many agree that some sort of compromise to recharter the Bank with reforms to restrict its influence would have been ideal.[335][336][337]
1930s Jackson biographer Marquis James commemorates Jackson's war against the Bank as the triumph of ordinary men against greedy and corrupt businessmen. Arthur M. Schlesinger Jr., who wrote The Age of Jackson (1945), adopts a similar theme, celebrating Jacksonian democracy and representing it as the triumph of Eastern workers. Schlesinger portrays Jackson's economic program as a progressive precursor to the New Deal under Franklin D. Roosevelt.[334] Robert V. Remini believes that the Bank had "too much power, which it was obviously using in politics. It had too much money which it was using to corrupt individuals. And so Jackson felt he had to get rid of it. It is a pity because we do need a national bank, but it requires control." He refutes the idea that the collapse of the Bank was responsible for the Panic of 1837, which he describes as "a world-wide economic collapse", but concedes that it "may have exacerbated" the crisis.[335]
Richard Hofstadter accepts that the Bank had too much power to interfere in politics but excoriates Jackson for making war on it. "By destroying Biddle's Bank Jackson had taken away the only effective restraint on the wildcatters ... he had strangled a potential threat to democratic government, but at an unnecessarily high cost. He had caused Biddle to create one depression and the pet banks to aggravate a second, and he had left the nation committed to a currency and credit system even more inadequate than the one he had inherited." Hofstadter criticizes Schlesinger's contention that Jackson's program was a forerunner to the New Deal, arguing that the two were distinct because Jackson wanted less government involvement in finance and infrastructure, while Roosevelt wanted more.[336] Hammond, in his Banks and Politics in America from the Revolution to the Civil War, renews the criticism of Schlesinger. He praises the Bank and Biddle's conduct, claiming that Jackson's war on it created a periodic of economic instability that would not be remedied until the creation of the Federal Reserve in 1913. Historian Jon Meacham, in his 2008 biography of Jackson, concludes that the destruction of the Bank went against the country's interests.[334]
Daniel Walker Howe criticizes Jackson's hard money policies and claims that his war on the Bank "brought little if any benefit" to the common men who made up the majority of his supporters. In the end, he believes, the government was deprived of the stabilizing influence of a national bank and instead ended up with inflationary paper currency. "It was America's failure that the future of the national bank could have been resolved through compromise and a larger measure of government supervision", Howe writes. "Jackson and Biddle were both too headstrong for the country's good. The great Bank War turned out to be a conflict both sides lost."[337]
Bank of England
 Seal of the Bank of England | |
| Headquarters | Threadneedle Street, London, England, United Kingdom |
|---|---|
| Coordinates | 51.5142°N 0.0885°WCoordinates: 51.5142°N 0.0885°W |
| Established | 27 July 1694 |
| Ownership | Owned by HM Government through the Government Legal Department[1][2] |
| Governor | Andrew Bailey (since 2020) |
| Central bank of | United Kingdom |
| Currency | Pound sterling GBP (ISO 4217) |
| Reserves | 101 590 million USD[2] |
| Bank rate | 0.1%[3] |
| Website | www |
| This article is part of a series on |
| Politics of the United Kingdom |
|---|
.svg) |
 United Kingdom portal |
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, and still one of the bankers for the Government of the United Kingdom, it is the world's eighth-oldest bank. It was privately owned by stockholders from its foundation in 1694 until it was nationalised in 1946 by the Attlee ministry.[4][5]
In 2009, a request made to HM Treasury under the Freedom of Information Act sought details about the 3% Bank of England stock owned by unnamed shareholders whose identity the Bank is not at liberty to disclose.[6] In a letter of reply dated 15 October 2009, HM Treasury explained that. 'Some of the 3% Treasury stock which was used to compensate former owners of Bank stock has not been redeemed. However, interest is paid out twice a year and it is not the case that this has been accumulating and compounding.' [7]
The Bank became an independent public organisation in 1998, wholly owned by the Treasury Solicitor on behalf of the government,[1] but with independence in setting monetary policy.[8][9][10][11]
The Bank is one of eight banks authorised to issue banknotes in the United Kingdom, has a monopoly on the issue of banknotes in England and Wales and regulates the issue of banknotes by commercial banks in Scotland and Northern Ireland.[12]
The Bank's Monetary Policy Committee has a devolved responsibility for managing monetary policy. The Treasury has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances", but such orders must be endorsed by Parliament within 28 days.[13] The Bank's Financial Policy Committee held its first meeting in June 2011 as a macroprudential regulator to oversee regulation of the UK's financial sector.
The Bank's headquarters have been in London's main financial district, the City of London, on Threadneedle Street, since 1734. It is sometimes known as The Old Lady of Threadneedle Street, a name taken from a satirical cartoon by James Gillray in 1797.[14] The road junction outside is known as Bank junction.
As a regulator and central bank, the Bank of England has not offered consumer banking services for many years, but it still does manage some public-facing services such as exchanging superseded bank notes.[15] Until 2016, the bank provided personal banking services as a privilege for employees.[16]
History
Founding
England's crushing defeat by France, the dominant naval power, in naval engagements culminating in the 1690 Battle of Beachy Head, became the catalyst for England to rebuild itself as a global power. William III's government wanted to build a naval fleet that would rival that of France; however, the ability to construct this fleet was hampered both by a lack of available public funds and the low credit of the English government in London. This lack of credit made it impossible for the English government to borrow the £1,200,000 (at 8% per annum) that it wanted for the construction of the fleet.[17]
To induce subscription to the loan, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of England. The Bank was given exclusive possession of the government's balances, and was the only limited-liability corporation allowed to issue bank notes.[18] The lenders would give the government cash (bullion) and issue notes against the government bonds, which can be lent again. The £1.2 million was raised in 12 days; half of this was used to rebuild the navy.
As a side effect, the huge industrial effort needed, including establishing ironworks to make more nails and advances[clarification needed] in agriculture feeding the quadrupled strength of the navy, started to transform the economy. This helped the new Kingdom of Great Britain – England and Scotland were formally united in 1707 – to become powerful. The power of the navy made Britain the dominant world power in the late 18th and early 19th centuries.[19]
The establishment of the bank was devised[clarification needed] by Charles Montagu, 1st Earl of Halifax, in 1694. The plan of 1691, which had been proposed by William Paterson three years before, had not then been acted upon.[20] 58 years earlier, in 1636, Financier to the king, Philip Burlamachi, had proposed exactly the same idea in a letter addressed to Sir Francis Windebank.[21] He proposed a loan of £1.2 million to the government; in return the subscribers would be incorporated as The Governor and Company of the Bank of England with long-term banking privileges including the issue of notes. The royal charter was granted on 27 July through the passage of the Tonnage Act 1694.[22] Public finances were in such dire condition at the time[23] that the terms of the loan were that it was to be serviced at a rate of 8% per annum, and there was also a service charge of £4,000 per annum for the management of the loan. The first governor was Sir John Houblon, who is depicted in the £50 note issued in 1994. The charter was renewed in 1742, 1764, and 1781.
18th century
The Bank's original home was in Walbrook, a street in the City of London, where during reconstruction in 1954 archaeologists found the remains of a Roman temple of Mithras (Mithras is – rather fittingly – said to have been worshipped as, amongst other things, the God of Contracts);[24] the Mithraeum ruins are perhaps the most famous of all 20th-century Roman discoveries in the City of London and can be viewed by the public.[citation needed]
The Bank moved to its current location in Threadneedle Street in 1734,[25] and thereafter slowly acquired neighbouring land to create the site necessary for erecting the Bank's original home at this location, under the direction of its chief architect Sir John Soane, between 1790 and 1827. (Sir Herbert Baker's rebuilding of the Bank in the first half of the 20th century, demolishing most of Soane's masterpiece, was described by architectural historian Nikolaus Pevsner as "the greatest architectural crime, in the City of London, of the twentieth century".)[citation needed]
When the idea and reality of the national debt came about during the 18th century, this was also managed by the Bank. During the American war of independence, business for the Bank was so good that George Washington remained a shareholder throughout the period.[26] By the charter renewal in 1781 it was also the bankers' bank – keeping enough gold to pay its notes on demand until 26 February 1797, when war had so diminished gold reserves that – following an invasion scare caused by the Battle of Fishguard days earlier – the government prohibited the Bank from paying out in gold by the passing of the Bank Restriction Act 1797. This prohibition lasted until 1821.[citation needed]
19th century
.jpg)
In 1825–26, the bank was able to avert a liquidity crisis when Nathan Mayer Rothschild succeeded in supplying it with gold.[27]
The 1844 Bank Charter Act tied the issue of notes to the gold reserves and gave the Bank sole rights with regard to the issue of banknotes. Private banks that had previously had that right retained it, provided that their headquarters were outside London and that they deposited security against the notes that they issued. A few English banks continued to issue their own notes until the last of them was taken over in the 1930s. Scottish and Northern Irish private banks still have that right.
The bank acted as lender of last resort for the first time in the panic of 1866.[28]
The last private bank in England to issue its own notes was Thomas Fox's Fox, Fowler and Company bank in Wellington, which rapidly expanded, until it merged with Lloyds Bank in 1927. They were legal tender until 1964. There are nine notes left in circulation; one is housed at Tone Dale House, Wellington.
20th century
Britain was on the gold standard until 1931, when the Bank of England unilaterally and abruptly took Britain off the gold standard.[29]
During the governorship of Montagu Norman, from 1920 to 1944, the Bank made deliberate efforts to move away from commercial banking and become a central bank. In 1946, shortly after the end of Norman's tenure, the bank was nationalised by the Labour government.
The Bank pursued the multiple goals of Keynesian economics after 1945, especially "easy money" and low interest rates to support aggregate demand. It tried to keep a fixed exchange rate, and attempted to deal with inflation and sterling weakness by credit and exchange controls.[30]
In 1977, the Bank set up a wholly owned subsidiary called Bank of England Nominees Limited (BOEN), a now defunct private limited company, with two of its hundred £1 shares issued. According to its Memorandum & Articles of Association, its objectives were: "To act as Nominee or agent or attorney either solely or jointly with others, for any person or persons, partnership, company, corporation, government, state, organisation, sovereign, province, authority, or public body, or any group or association of them...." Bank of England Nominees Limited was granted an exemption by Edmund Dell, Secretary of State for Trade, from the disclosure requirements under Section 27(9) of the Companies Act 1976, because "it was considered undesirable that the disclosure requirements should apply to certain categories of shareholders." The Bank of England is also protected by its royal charter status, and the Official Secrets Act.[31] BOEN was a vehicle for governments and heads of state to invest in UK companies (subject to approval from the Secretary of State), providing they undertake "not to influence the affairs of the company".[32][33] In its later years, BOEN was no longer exempt from company law disclosure requirements.[34] Although a dormant company,[35] dormancy does not preclude a company actively operating as a nominee shareholder.[36] BOEN had two shareholders: the Bank of England, and the Secretary of the Bank of England.[37]
The reserve requirement for banks to hold a minimum fixed proportion of their deposits as reserves at the Bank of England was abolished in 1981: see reserve requirement for more details. The contemporary transition from Keynesian economics to Chicago economics was analysed by Nicholas Kaldor in The Scourge of Monetarism.[38]
On 6 May 1997, following the 1997 general election that brought a Labour government to power for the first time since 1979, it was announced by the Chancellor of the Exchequer, Gordon Brown, that the Bank would be granted operational independence over monetary policy.[39] Under the terms of the Bank of England Act 1998 (which came into force on 1 June 1998), the Bank's Monetary Policy Committee was given sole responsibility for setting interest rates to meet the Government's Retail Prices Index (RPI) inflation target of 2.5%.[40] The target has changed to 2% since the Consumer Price Index (CPI) replaced the Retail Prices Index as the Treasury's inflation index.[41] If inflation overshoots or undershoots the target by more than 1%, the Governor has to write a letter to the Chancellor of the Exchequer explaining why, and how he will remedy the situation.[42]
The success of inflation targeting in the United Kingdom has been attributed to the Bank's focus on transparency.[43] The Bank of England has been a leader in producing innovative ways of communicating information to the public, especially through its Inflation Report, which has been emulated by many other central banks.[44]
Independent central banks that adopt an inflation target are known as Friedmanite central banks. This change in Labour's politics was described by Skidelsky in The Return of the Master[45] as a mistake and as an adoption of the Rational Expectations Hypothesis as promulgated by Walters.[46] Inflation targets combined with central bank independence have been characterised as a "starve the beast" strategy creating a lack of money in the public sector.
The handing over of monetary policy to the Bank had been a key plank of the Liberal Democrats' economic policy since the 1992 general election.[47] Conservative MP Nicholas Budgen had also proposed this as a private member's bill in 1996, but the bill failed as it had the support of neither the government nor the opposition.
21st century
Mark Carney assumed the post of Governor of the Bank of England on 1 July 2013. He succeeded Mervyn King, who took over on 30 June 2003. Carney, a Canadian, was to serve an initial five-year term rather than the typical eight. He became the first Governor not to be a UK citizen, but has since been granted citizenship.[48] At Government request, his term was extended to 2019, then again to 2020.[49] As of January 2014, the Bank also has four Deputy Governors.
BOEN was dissolved, following liquidation, in July 2017.[50]
Functions
Two main areas are tackled by the Bank to ensure it carries out these functions efficiently:[51]
Monetary stability
 | This section needs additional citations for verification. (July 2017) (Learn how and when to remove this template message) |
Note: It is important to note that "monetary" and "financial" are synonyms.[citation needed]
Stable prices and confidence in the currency are the two main criteria for monetary stability. Stable prices are maintained by seeking to ensure that price increases meet the Government's inflation target. The Bank aims to meet this target by adjusting the base interest rate, which is decided by the Monetary Policy Committee, and through its communications strategy, such as publishing yield curves.[52]
- Maintaining financial stability involves protecting against threats to the whole financial system. Threats are detected by the Bank's surveillance and market intelligence functions. The threats are then dealt with through financial and other operations, both at home and abroad. In exceptional circumstances, the Bank may act as the lender of last resort by extending credit when no other institution will.
The Bank works together with other institutions to secure both monetary and financial stability, including:
- HM Treasury, the Government department responsible for financial and economic policy; and
- Other central banks and international organisations, with the aim of improving the international financial system.
The 1997 memorandum of understanding describes the terms under which the Bank, the Treasury and the FSA work toward the common aim of increased financial stability.[53] In 2010, the incoming Chancellor announced his intention to merge the FSA back into the Bank. As of 2012, the current director for financial stability is Andy Haldane.[54]
The Bank acts as the government's banker, and it maintains the government's Consolidated Fund account. It also manages the country's foreign exchange and gold reserves. The Bank also acts as the bankers' bank, especially in its capacity as a lender of last resort.
The Bank has a monopoly on the issue of banknotes in England and Wales. Scottish and Northern Irish banks retain the right to issue their own banknotes, but they must be backed one-for-one with deposits at the Bank, excepting a few million pounds representing the value of notes they had in circulation in 1845. The Bank decided to sell its banknote-printing operations to De La Rue in December 2002, under the advice of Close Brothers Corporate Finance Ltd.[55]
Since 1998, the Monetary Policy Committee (MPC) has had the responsibility for setting the official interest rate. However, with the decision to grant the Bank operational independence, responsibility for government debt management was transferred in 1998 to the new Debt Management Office, which also took over government cash management in 2000. Computershare took over as the registrar for UK Government bonds (gilt-edged securities or gilts) from the Bank at the end of 2004.
The Bank used to be responsible for the regulation and supervision of the banking and insurance industries. This responsibility was transferred to the Financial Services Authority in June 1998, but after the financial crises in 2008 new banking legislation transferred the responsibility for regulation and supervision of the banking and insurance industries back to the Bank.
In 2011, the interim Financial Policy Committee (FPC) was created as a mirror committee to the MPC to spearhead the Bank's new mandate on financial stability. The FPC is responsible for macro prudential regulation of all UK banks and insurance companies.
To help maintain economic stability, the Bank attempts to broaden understanding of its role, both through regular speeches and publications by senior Bank figures, a semiannual Financial Stability Report,[56] and through a wider education strategy aimed at the general public. It currently maintains a free museum and ran the Target Two Point Zero competition for A-level students, closing in 2017.[57]
Asset purchase facility
The Bank has operated, since January 2009, an Asset Purchase Facility (APF) to buy "high-quality assets financed by the issue of Treasury bills and the DMO's cash management operations" and thereby improve liquidity in the credit markets.[58] It has, since March 2009, also provided the mechanism by which the Bank's policy of quantitative easing (QE) is achieved, under the auspices of the MPC. Along with the managing the £200 billion of QE funds, the APF continues to operate its corporate facilities. Both are undertaken by a subsidiary company of the Bank of England, the Bank of England Asset Purchase Facility Fund Limited (BEAPFF).[58]
Banknote issues
The Bank has issued banknotes since 1694. Notes were originally hand-written; although they were partially printed from 1725 onwards, cashiers still had to sign each note and make them payable to someone. Notes were fully printed from 1855. Until 1928 all notes were "White Notes", printed in black and with a blank reverse. In the 18th and 19th centuries White Notes were issued in £1 and £2 denominations. During the 20th century White Notes were issued in denominations between £5 and £1000.
Until the mid-19th century, commercial banks were allowed to issue their own banknotes, and notes issued by provincial banking companies were commonly in circulation.[59] The Bank Charter Act 1844 began the process of restricting note issue to the Bank; new banks were prohibited from issuing their own banknotes and existing note-issuing banks were not permitted to expand their issue. As provincial banking companies merged to form larger banks, they lost their right to issue notes, and the English private banknote eventually disappeared, leaving the Bank with a monopoly of note issue in England and Wales. The last private bank to issue its own banknotes in England and Wales was Fox, Fowler and Company in 1921.[60][61] However, the limitations of the 1844 Act only affected banks in England and Wales, and today three commercial banks in Scotland and four in Northern Ireland continue to issue their own banknotes, regulated by the Bank.[12]
At the start of the First World War, the Currency and Bank Notes Act 1914 was passed, which granted temporary powers to HM Treasury for issuing banknotes to the values of £1 and 10/- (ten shillings). Treasury notes had full legal tender status and were not convertible into gold through the Bank; they replaced the gold coin in circulation to prevent a run on sterling and to enable raw material purchases for armament production. These notes featured an image of King George V (Bank of England notes did not begin to display an image of the monarch until 1960). The wording on each note was:
Treasury notes were issued until 1928, when the Currency and Bank Notes Act 1928 returned note-issuing powers to the banks.[62] The Bank of England issued notes for ten shillings and one pound for the first time on 22 November 1928.
During the Second World War the German Operation Bernhard attempted to counterfeit denominations between £5 and £50, producing 500,000 notes each month in 1943. The original plan was to parachute the money into the UK in an attempt to destabilise the British economy, but it was found more useful to use the notes to pay German agents operating throughout Europe. Although most fell into Allied hands at the end of the war, forgeries frequently appeared for years afterwards, which led banknote denominations above £5 to be removed from circulation.
In 2006, over £53 million in banknotes belonging to the Bank was stolen from a depot in Tonbridge, Kent.[63]
Modern banknotes are printed by contract with De La Rue Currency in Loughton, Essex.[64]
Gold vault
The bank is custodian to the official gold reserves of the United Kingdom and around 30 other countries.[65] As of April 2016, the bank held around 400,000 bars, which is equivalent to 5,134 tonnes (5,659 tons) of gold. These gold deposits were estimated in August 2018 to have a current market value of approximately £200 billion.[66] These estimates suggest the vault could hold as much as 3% of the gold mined throughout human history.[67]
Governance of the Bank of England
Governors
Following is a list of the governors of the Bank of England since the beginning of the 20th century:[68]
| Name | Period |
|---|---|
| Samuel Gladstone | 1899–1901 |
| Augustus Prevost | 1901–1903 |
| Samuel Morley | 1903–1905 |
| Alexander Wallace | 1905–1907 |
| William Campbell | 1907–1909 |
| Reginald Eden Johnston | 1909–1911 |
| Alfred Cole | 1911–1913 |
| Walter Cunliffe | 1913–1918 |
| Brien Cokayne | 1918–1920 |
| Montagu Norman | 1920–1944 |
| Thomas Catto | 1944–1949 |
| Cameron Cobbold | 1949–1961 |
| Rowland Baring (3rd Earl of Cromer) | 1961–1966 |
| Leslie O'Brien | 1966–1973 |
| Gordon Richardson | 1973–1983 |
| Robert Leigh-Pemberton | 1983–1993 |
| Edward George | 1993–2003 |
| Mervyn King | 2003–2013 |
| Mark Carney | 2013–2020 |
| Andrew Bailey | 2020–present |
Court of Directors
The Court of Directors is a unitary board that is responsible for setting the organisation's strategy and budget and taking key decisions on resourcing and appointments. It consists of five executive members from the Bank plus up to 9 non-executive members, all of whom are appointed by the Crown. The Chancellor selects the Chairman of the Court from among the non-executive members. The Court is required to meet at least 7 times a year.[69]
The Governor serves for a period of eight years, the Deputy Governors for five years, and the non-executive members for up to four years.
| Name | Function |
|---|---|
| Bradley Fried | Chairman of Court. Managing Partner of Grovepoint Capital LLP |
| Mark Carney | Governor |
| Benjamin Broadbent | Deputy Governor, Monetary Policy |
| Sir Jon Cunliffe | Deputy Governor, Financial Stability |
| Sam Woods | Deputy Governor, Prudential Regulation & Chief Executive of the Prudential Regulation Authority |
| Sir David Ramsden | Deputy Governor, Markets and Banking |
| Anne Glover | Chief Executive and Co-Founder of Amadeus Capital Partners |
| Diana Noble | Non-Executive Director |
| Diana 'Dido' Harding | Member of the House of Lords |
| Dave Prentis | General Secretary of UNISON |
| Don Robert | Chairman, Experian plc |
| Dorothy Thompson | Chair of Tullow Oil plc, |
| Ron Kalifa | Board Director of Worldpay and Chairman of Network International |
| Frances O'Grady | General Secretary of the British Trades Union Congress |
| Hanneke Smits | CEO of Newton Investment Management |
Other staff
Since 2013, the Bank has had a chief operating officer (COO).[71] As of 2017, the Bank's COO has been Joanna Place.[72]
As of 2014, the Bank's chief economist is Andrew Haldane.[73]
See also
- List of British currencies
- Bank of England Act
- Bank of England club
- Coins of the pound sterling
- East India Company shareholders
- Financial Sanctions Unit
- Fractional-reserve banking
- Commonwealth banknote-issuing institutions
- Bank of England Museum
- Deputy Governor of the Bank of England
- List of directors of the Bank of England
References
- ^ a b "Freedom of Information – disclosures". Bank of England. Retrieved 29 September 2013.
- ^ a b https://d-nb.info/1138787981/34
- ^ Bank of England. "Monetary policy summary for the special monetary policy committee meeting on 19 March 2020". Retrieved 19 March 2020.
- ^ "House of Commons Debate 29th October 1945, Second Reading of the Bank of England Bill". Hansard.millbanksystems.com. Retrieved 12 October 2012.
- ^ "Bank of England Act 1946". Retrieved 19 November 2019.
- ^ Keogh, Joseph (17 September 2009). "Named and unnamed shareholders of the Bank of England". What do they know.
- ^ Morran, Paul (15 October 2009). "Re: Freedom of Information Act 2000: Bank of England Unnamed 3% Stock Holding Not Redeemed" (PDF). What do they know.
- ^ 1 June 1998, The Bank of England Act 1998 (Commencement) Order 1998 s 2
- ^ "BBC On This Day - 6-1997: Brown sets Bank of England free". 6 May 1997. Retrieved 14 September 2014.
- ^ "Bank of England - About the Bank". Archived from the original on 31 December 2014. Retrieved 14 September 2014.
- ^ "Bank of England: Relationship with Parliament". Archived from the original on 8 July 2009. Retrieved 14 September 2014.
- ^ a b "The Bank of England's Role in Regulating the Issue of Scottish and Northern Ireland Banknotes". Bank of England website. Retrieved 18 November 2019.
- ^ "Act of Parliament gives devolved responsibility to the MPC with reserve powers for the Treasury". Opsi.gov.uk. Retrieved 10 May 2010.
- ^ Bank of England, "Who is The Old Lady of Threadneedle Street? Archived 15 January 2018 at the Wayback Machine". Accessed 15 January 2018.
- ^ "Exchanging old banknotes". Bank of England. Retrieved 19 October 2019.
- ^ Topham, Gwyn. "Bank of England to close personal banking service for employees". The Guardian. Retrieved 8 November2016.
- ^ Nichols, Glenn O. (1971). "English Government Borrowing, 1660-1688". Journal of British Studies. 10 (2): 83–104. doi:10.1086/385611. ISSN 0021-9371. JSTOR 175350.
- ^ Bagehot, Walter (1873). Lombard Street : a description of the money market. London: Henry S. King and Co.
- ^ "BBC: Empire of the Seas programme". webcache.googleusercontent.com. Archived from the originalon 20 December 2019. Retrieved 10 May 2010.
- ^ Committee of Finance and Industry 1931 (Macmillan Report) description of the founding of Bank of England. 1 January 1979. ISBN 9780405112126. Retrieved 10 May 2010. "Its foundation in 1694 arose out the difficulties of the Government of the day in securing subscriptions to State loans. Its primary purpose was to raise and lend money to the State and in consideration of this service it received under its Charter and various Act of Parliament, certain privileges of issuing bank notes. The corporation commenced, with an assured life of twelve years after which the Government had the right to annul its Charter on giving one year's notice. '''Subsequent extensions of this period coincided generally with the grant of additional loans to the State'''"
- ^ Calendar Of State Papers Domestic Series p. 73 1636-1637
- ^ H. Roseveare, /The Financial Revolution 1660–1760/ (1991, Longman), pp. 34
- ^ III, Kenneth E. Hendrickson (25 November 2014). The Encyclopedia of the Industrial Revolution in World History. Rowman & Littlefield. ISBN 9780810888883.
- ^ "MITHRA i. MITRA IN OLD INDIAN – Encyclopaedia Iranica". www.iranicaonline.org. Retrieved 20 September 2016.
- ^ "Bank of England: Buildings and Architects". The Bank of England. Archived from the original on 10 September 2015. Retrieved 31 July 2015.
- ^ "The many, often competing, jobs of the Bank of England". The Economist. 16 September 2017.
- ^ Wilson, Harry (4 February 2011). "Rothschild: history of a London banking dynasty". The Telegraph.
- ^ "From lender of last resort to global currency? Sterling lessons for the US dollar". VOX. 23 July 2011. Retrieved 8 May 2014.
- ^ Morrison, James Ashley (2016). "Shocking Intellectual Austerity: The Role of Ideas in the Demise of the Gold Standard in Britain" (PDF). International Organization. 70 (1): 175–207. doi:10.1017/S0020818315000314. ISSN 0020-8183.
- ^ John Fforde, The Role of the Bank of England, 1941–1958(1992)
- ^ "27 July 1694: the Bank of England is created by Royal Charter". MoneyWeek. 27 July 2015. Retrieved 2 January 2018.
- ^ "Proceedings of the House of Commons, 21st April 1977".
- ^ "Guardian article on Queen's private wealth, 30th May 2002". The Guardian. London. 30 May 2002.
- ^ "Proceedings of the House of Lords, 26th April 2011".
- ^ "Bank of England Nominees Company Accounts".
- ^ "Example of a Dormant Nominee Company". Archived from the original on 25 April 2012. Retrieved 12 September 2011.
- ^ "Freedom of Information Act response regarding Bank of England Nominees Limited" (PDF). Archived from the original (PDF) on 28 August 2016. Retrieved 31 May 2011.
- ^ The Scourge of Monetarism. Oxford University Press. 1 January 1982. ISBN 9780198771876. Retrieved 19 August 2016.
- ^ Sattler, Thomas; Brandt, Patrick T.; Freeman, John R. (April 2010). "Democratic accountability in open economies". Quarterly Journal of Political Science. 5 (1): 71–97. CiteSeerX 10.1.1.503.6174. doi:10.1561/100.00009031.
- ^ "Key Monetary Policy Dates Since 1990". Bank of England. Archived from the original on 29 June 2007. Retrieved 20 September 2007.
- ^ "Remit of the Monetary Policy Committee of the Bank of England and the New Inflation Target" (PDF). HM Treasury. 10 December 2003. Archived (PDF) from the original on 26 September 2007. Retrieved 20 September 2007.
- ^ "Monetary Policy Framework". Bank of England. Retrieved 31 October 2016.
- ^ "Targeting Inflation: The United Kingdom in Retrospect"(PDF). IMF. Retrieved 31 October 2016.
- ^ "Inflation Targeting Has Been A Successful Monetary Policy Strategy". National Bureau of Economic Research. Retrieved 31 October 2016.
- ^ The Return of the Master. Public Affairs. 2009. ISBN 978-1610390033. Retrieved 19 August 2016.
- ^ Walters, A.A. (June 1971). "Consistent expectations, distributed lags and the quantity theory". The Economic Journal. 81 (322): 273–281. doi:10.2307/2230071. JSTOR 2230071.
- ^ Liberal Democrat election manifesto, 1992
- ^ "Mark Carney named new Bank of England governor". BBC News. 26 November 2012. Retrieved 26 November 2012.
- ^ "Carney to stay at Bank of England until 2020". BBC News. 11 September 2018.
- ^ "BANK OF ENGLAND NOMINEES LIMITED - Filing history (free information from Companies House)".
- ^ "The Bank's core purposes" (PDF). Annual Report 2011. Bank of England. Retrieved 24 October 2011.
- ^ Bank of England – Yield Curves by Internet Archive.[1]
- ^ "Memorandum of Understanding between the HM Treasury, the Bank of England and the Financial Services Authority" (PDF). Archived from the original (PDF) on 3 December 2010. Retrieved 10 May 2010.
- ^ Hannah Kuchler and Claire Jones (30 October 2012). "BoE's Haldane says Occupy was right". Financial Times. Retrieved 30 October 2012.(registration required)
- ^ "Sale of Bank Note Printing". Bank of England. Retrieved 10 June 2006.
- ^ [2] Archived 11 February 2012 at the Wayback Machine
- ^ "Bank of England: Education". Bank of England. Archivedfrom the original on 29 March 2007. Retrieved 28 March 2007.
- ^ a b "Asset Purchase Facility". Bank of England. Archivedfrom the original on 26 July 2010. Retrieved 12 August 2010.
- ^ "£2 note issued by Evans, Jones, Davies & Co". British Museum. Archived from the original on 18 January 2012. Retrieved 31 October 2011.
- ^ "A brief history of banknotes". Bank of England website. Retrieved 31 October 2011.
- ^ "Fox, Fowler & Co. £5 note". British Museum. Archived from the original on 2 October 2011. Retrieved 31 October 2011.
- ^ Trevor R Howard. "Treasury notes". Archived from the original on 5 December 2007. Retrieved 12 October 2007.
- ^ "Record £53m stolen in depot raid". 27 February 2006. Retrieved 14 September 2014.
- ^ "Banknote Production". bankofengland.co.uk. Bank of England. Archived from the original on 10 March 2012.
- ^ Belton, Pádraig. "The city with $248 billion beneath its pavement". www.bbc.com. Retrieved 9 November 2020.
- ^ "Value of all forms of gold".
- ^ 5,134 tonnes / 171,300 tonnes = 2.997%
- ^ "Governors of the Bank of England: A chronological list (1694 – present)" (PDF). Bank of England. Retrieved 17 July 2014.
- ^ "Court of Directors". Bank of England. Retrieved 8 January2018.
- ^ "Court of Directors". www.bankofengland.co.uk. Retrieved 11 June 2019.
- ^ "News Release - Appointment of Chief Operating Officer". Bank of England. 18 June 2013. Retrieved 3 September 2015.
- ^ "Joanna Place - Chief Operating Officer". Bank of England. Retrieved 6 March 2020.
- ^ "Bank of England Keeps Rates Steady". ABC News. Associated Press. 22 October 2014. Archived from the originalon 27 October 2014. Retrieved 26 October 2014.
Further reading
- Brady, Robert A. (1950). Crisis in Britain. Plans and Achievements of the Labour Government. University of California Press., on nationalisation 1945–50, pp 43–76
- Capie, Forrest. The Bank of England: 1950s to 1979 (Cambridge University Press, 2010). xxviii + 890 pp. ISBN 978-0-521-19282-8 excerpt and text search
- Clapham, J. H. Bank of England (2 vol 1944) for 1694–1914
- Fforde, John. The Role of the Bank of England, 1941–1958 (1992) excerpt and text search
- Francis, John. History of the Bank of England: Its Times and Traditions excerpt and text search
- Hennessy, Elizabeth. A Domestic History of the Bank of England, 1930–1960 (2008) excerpt and text search
- Kynaston, David. 2017. Till Time's Last Sand: A History of the Bank of England, 1694–2013. Bloomsbury.
- Lane, Nicholas. "The Bank of England in the Nineteenth Century." History Today (Aug 1960) 19#8 pp 535–541.
- Roberts, Richard, and David Kynaston. The Bank of England: Money, Power and Influence 1694–1994 (1995)
- Sayers, R. S. The Bank of England, 1891–1944 (1986) excerpt and text search
- Schuster, F. The Bank of England and the State
- Wood, John H. A History of Central Banking in Great Britain and the United States (Cambridge University Press, 2005)
External links
Andrew Jackson
Andrew Jackson | |
|---|---|
 Portrait by Ralph Eleaser Whiteside Earl, c. 1835 | |
| 7th President of the United States | |
| In office March 4, 1829 – March 4, 1837 | |
| Vice President |
|
| Preceded by | John Quincy Adams |
| Succeeded by | Martin Van Buren |
| United States Senator from Tennessee | |
| In office March 4, 1823 – October 14, 1825 | |
| Preceded by | John Williams |
| Succeeded by | Hugh Lawson White |
| In office September 26, 1797 – April 1, 1798 | |
| Preceded by | William Cocke |
| Succeeded by | Daniel Smith |
| 1st Territorial Governor of Florida | |
| In office March 10, 1821 – December 31, 1821 | |
| Appointed by | James Monroe |
| Preceded by |
|
| Succeeded by | William Pope Duval |
| Justice of the Tennessee Supreme Court | |
| In office June 1798 – June 1804 | |
| Preceded by | Howell Tatum |
| Succeeded by | John Overton |
| Member of the U.S. House of Representatives from Tennessee's at-large district | |
| In office December 4, 1796 – September 26, 1797 | |
| Preceded by | Constituency established |
| Succeeded by | William C. C. Claiborne |
| Personal details | |
| Born | March 15, 1767 Waxhaw Settlement between North Carolina and South Carolina, British America |
| Died | June 8, 1845 (aged 78) Nashville, Tennessee, U.S. |
| Cause of death | Dropsy and heart failure |
| Resting place | The Hermitage |
| Political party |
|
| Spouse(s) | |
| Children | 3 adopted sons |
| Awards | |
| Signature |  |
| Military service | |
| Allegiance |  United States |
| Branch/service | United States Army |
| Rank | |
| Battles/wars | |
| ||
|---|---|---|
Military Career President of the United States First term
Second term
Post-presidency Legacy  | ||
Andrew Jackson (March 15, 1767 – June 8, 1845) was an American lawyer, soldier, and statesman who served as the seventh president of the United States from 1829 to 1837. Before being elected to the presidency, Jackson gained fame as a general in the United States Army and served in both houses of the U.S. Congress. An expansionist president, Jackson sought to advance the rights of the "common man"[1] against a "corrupt aristocracy"[2] and to preserve the Union.
Born in the colonial Carolinas in the decade before the American Revolutionary War, Jackson became a frontier lawyer and married Rachel Donelson Robards. He served briefly in the United States House of Representatives and the United States Senate, representing Tennessee. After resigning, he served as a justice on the Tennessee Supreme Court from 1798 until 1804. Jackson purchased a property later known as The Hermitage, and became a wealthy, slaveowning planter. In 1801, he was appointed colonel of the Tennessee militia and was elected its commander the following year. He led troops during the Creek War of 1813–1814, winning the Battle of Horseshoe Bend. The subsequent Treaty of Fort Jackson required the Creek surrender of vast lands in present-day Alabama and Georgia. In the concurrent war against the British, Jackson's victory in 1815 at the Battle of New Orleans made him a national hero. Jackson then led U.S. forces in the First Seminole War, which led to the annexation of Florida from Spain. Jackson briefly served as Florida's first territorial governor before returning to the Senate. He ran for president in 1824, winning a plurality of the popular and electoral vote. As no candidate won an electoral majority, the House of Representatives elected John Quincy Adams in a contingent election. In reaction to the alleged "corrupt bargain" between Adams and Henry Clay and the ambitious agenda of President Adams, Jackson's supporters founded the Democratic Party.
Jackson ran again in 1828, defeating Adams in a landslide. Jackson faced the threat of secession by South Carolina over what opponents called the "Tariff of Abominations". The crisis was defused when the tariff was amended, and Jackson threatened the use of military force if South Carolina attempted to secede. In Congress, Henry Clay led the effort to reauthorize the Second Bank of the United States. Jackson, regarding the Bank as a corrupt institution that benefited the wealthy at the expense of ordinary Americans, vetoed the renewal of its charter. After a lengthy struggle, Jackson and his allies thoroughly dismantled the Bank. In 1835, Jackson became the only president to completely pay off the national debt, fulfilling a longtime goal. While Jackson pursued numerous reforms designed to eliminate waste and corruption, his presidency marked the beginning of the ascendancy of the party "spoils system" in American politics. In 1830, Jackson signed the Indian Removal Act, which forcibly removed most members of the major tribes of the Southeast to Indian Territory; these removals were subsequently known as the Trail of Tears. The relocation process dispossessed these nations of their land and resulted in widespread death and disease. Jackson opposed the abolitionist movement, which grew stronger in his second term. In foreign affairs, Jackson's administration concluded a "most favored nation" treaty with the United Kingdom, settled claims of damages against France from the Napoleonic Wars, and recognized the Republic of Texas. In January 1835, he survived the first assassination attempt on a sitting president.
In his retirement, Jackson remained active in Democratic Party politics, supporting the presidencies of Martin Van Buren and James K. Polk. Though fearful of its effects on the slavery debate, Jackson advocated the annexation of Texas, which was accomplished shortly before his death. Jackson has been widely revered in the United States as an advocate for democracy and the common man. Many of his actions proved divisive, garnering both fervent support and strong opposition from many in the country. His reputation has suffered since the 1970s, largely due to his pivotal role in the forcible removal of Native Americans from their ancestral homelands; however, surveys of historians and scholars have ranked Jackson favorably among U.S. presidents.
Early life and education
Andrew Jackson was born on March 15, 1767, in the Waxhaws region of the Carolinas. His parents were Scots-Irish colonists Andrew Jackson and his wife Elizabeth Hutchinson, Presbyterians who had emigrated from Ulster, Ireland, two years earlier.[3][4] Jackson's father was born in Carrickfergus, County Antrim, around 1738.[5] Jackson's parents lived in the village of Boneybefore, also in County Antrim. His paternal ancestors originated in Killingswold Grove, Yorkshire, England.[6]
When they immigrated to North America in 1765, Jackson's parents’ first two children also came with them from Ireland, Hugh (born 1763) and Robert (born 1764).[7] The family probably landed in Philadelphia. Most likely they traveled overland through the Appalachian Mountains to the Scots-Irish community in the Waxhaws, straddling the border between North and South Carolina.[8] Jackson's father died in February 1767 at the age of 29, in a logging accident while clearing land, three weeks before his son Andrew was born.[7] Jackson, his mother, and his brothers lived with Jackson's aunt and uncle in the Waxhaws region, and Jackson received schooling from two nearby priests.[9]
Jackson's exact birthplace is unclear because of a lack of knowledge of his mother's actions immediately following her husband's funeral.[10] The area was so remote that the border between North and South Carolina had not been officially surveyed.[11] In 1824, Jackson wrote a letter saying he had been born on the plantation of his uncle James Crawford in Lancaster County, South Carolina.[10] Jackson may have claimed to be a South Carolinian because the state was considering nullification of the Tariff of 1824, which he opposed. In the mid-1850s, second-hand evidence indicated that he might have been born at a different uncle's home in North Carolina.[11][12] As a young boy, Jackson was easily offended and was considered something of a bully. He was, however, also said to have taken a group of younger and weaker boys under his wing and been kind to them.[13]
Revolutionary War service
During the Revolutionary War, Jackson's eldest brother, Hugh, died from heat exhaustion after the Battle of Stono Ferry on June 20, 1779.[14] Anti-British sentiment intensified following the Waxhaws Massacre on May 29, 1780. Jackson's mother encouraged him and his elder brother Robert to attend the local militia drills.[15] Soon, they began to help the militia as couriers.[16] They served under Colonel William Richardson Davie at the Battle of Hanging Rock on August 6.[15] Andrew and Robert were captured by the British in April 1781[17][16] while staying at the home of the Crawford family. When Andrew refused to clean the boots of a British officer, the officer slashed at the youth with a sword, leaving him with scars on his left hand and head, as well as an intense hatred for the British. Robert also refused to do as commanded and was struck with the sword.[18] The two brothers were held as prisoners, contracted smallpox, and nearly starved to death in captivity.[19]
Later that year, their mother Elizabeth secured the brothers' release. She then began to walk both boys back to their home in the Waxhaws, a distance of some 40 miles (64 km). Both were in very poor health. Robert, who was far worse, rode on the only horse they had, while Andrew walked behind them. In the final two hours of the journey, a torrential downpour began which worsened the effects of the smallpox. Within two days of arriving back home, Robert was dead and Andrew in mortal danger.[20][21] After nursing Andrew back to health, Elizabeth volunteered to nurse American prisoners of war on board two British ships in the Charleston harbor, where there had been an outbreak of cholera. In November, she died from the disease and was buried in an unmarked grave. Andrew became an orphan at age 14. He blamed the British personally for the loss of his brothers and mother.[22]
Early career
Legal career and marriage
After the Revolutionary War, Jackson received a sporadic education in a local Waxhaw school.[23] On bad terms with much of his extended family, he boarded with several different people.[24] In 1781, he worked for a time as a saddle-maker, and eventually taught school. He apparently prospered in neither profession.[25] In 1784, he left the Waxhaws region for Salisbury, North Carolina, where he studied law under attorney Spruce Macay.[26] With the help of various lawyers, he was able to learn enough to qualify for the bar. In September 1787, Jackson was admitted to the North Carolina bar.[24] Shortly thereafter, his friend John McNairy helped him get appointed to a vacant prosecutor position in the Western District of North Carolina, which would later become the state of Tennessee. During his travel west, Jackson bought his first slave, a woman who was older than him. In 1788, having been offended by fellow lawyer Waightstill Avery, Jackson fought his first duel. The duel ended with both men firing into the air, having made a secret agreement to do so before the engagement.[27][28]
Jackson moved to the small frontier town of Nashville in 1788, where he lived as a boarder with Rachel Stockly Donelson, the widow of John Donelson. Here Jackson became acquainted with their daughter, Rachel Donelson Robards. The younger Rachel was in an unhappy marriage with Captain Lewis Robards; he was subject to fits of jealous rage.[29] The two were separated in 1790. According to Jackson, he married Rachel after hearing that Robards had obtained a divorce. Her divorce had not been made final, making Rachel's marriage to Jackson bigamous and therefore invalid. After the divorce was officially completed, Rachel and Jackson remarried in 1794.[30] To complicate matters further, evidence shows that Rachel had been living with Jackson and referred to herself as Mrs. Jackson before the petition for divorce was ever made.[31] It was not uncommon on the frontier for relationships to be formed and dissolved unofficially, as long as they were recognized by the community.[32]
Land speculation and early public career
In 1794, Jackson formed a partnership with fellow lawyer John Overton, dealing in claims for land reserved by treaty for the Cherokee and Chickasaw.[33] Like many of their contemporaries, they dealt in such claims although the land was in Indian territory. Most of the transactions involved grants made under a 'land grab' act of 1783 that briefly opened Indian lands west of the Appalachians within North Carolina to claim by that state's residents. He was one of the three original investors who founded Memphis, Tennessee, in 1819.[34]
After moving to Nashville, Jackson became a protege of William Blount, a friend of the Donelsons and one of the most powerful men in the territory. Jackson became attorney general in 1791, and he won election as a delegate to the Tennessee constitutional convention in 1796.[27] When Tennessee achieved statehood that year, he was elected its only U.S. Representative. He was a member of the Democratic-Republican Party, the dominant party in Tennessee.[35] As a representative, Jackson staunchly advocated for the rights of Tennesseans against Native American tribal interests. He strongly opposed the Jay Treaty and criticized George Washington for allegedly removing Democratic-Republicans from public office. Jackson joined several other Democratic-Republican congressmen in voting against a resolution of thanks for Washington, a vote that would later haunt him when he sought the presidency.[36] In 1797, the state legislature elected him as U.S. senator. Jackson seldom participated in debate and found the job dissatisfying. He pronounced himself "disgusted with the administration" of President John Adams and resigned the following year without explanation.[37] Upon returning home, with strong support from western Tennessee, he was elected to serve as a judge of the Tennessee Supreme Court[38] at an annual salary of $600.[39] Jackson's service as a judge is generally viewed as a success and earned him a reputation for honesty and good decision-making.[40] Jackson resigned the judgeship in 1804. His official reason for resigning was ill health. He had been suffering financially from poor land ventures, and so it is also possible that he wanted to return full-time to his business interests.[41]
After arriving in Tennessee, Jackson won the appointment of judge advocate of the Tennessee militia.[42] In 1802, while serving on the Tennessee Supreme Court, he declared his candidacy for major general, or commander, of the Tennessee militia, a position voted on by the officers. At that time, most free men were members of the militia. The organizations, intended to be called up in case of armed conflicts, resembled large social clubs. Jackson saw it as a way to advance his stature.[43] With strong support from western Tennessee, he tied with John Sevier with seventeen votes. Sevier was a popular Revolutionary War veteran and former governor, the recognized leader of politics in eastern Tennessee. On February 5, Governor Archibald Roane broke the tie in Jackson's favor.[44] Jackson had also presented Roane with evidence of land fraud against Sevier. Subsequently, in 1803, when Sevier announced his intention to regain the governorship, Roane released the evidence. Jackson then published a newspaper article accusing Sevier of fraud and bribery. Sevier insulted Jackson in public, and the two nearly fought a duel over the matter. Despite the charges leveled against Sevier, he defeated Roane and continued to serve as governor until 1809.[45]
Planting career and controversy
In addition to his legal and political career, Jackson prospered as planter, slave owner, and merchant. He built a home and the first general store in Gallatin, Tennessee, in 1803. The next year, he acquired the Hermitage, a 640-acre (259 ha) plantation in Davidson County, near Nashville. He later added 360 acres (146 ha) to the plantation, which eventually totaled 1,050 acres (425 ha). The primary crop was cotton, grown by slaves—Jackson began with nine, owned as many as 44 by 1820, and later up to 150, placing him among the planter elite. Jackson also co-owned with his son Andrew Jackson Jr. the Halcyon plantation in Coahoma County, Mississippi, which housed 51 slaves at the time of his death.[47] Throughout his lifetime, Jackson may have owned as many as 300 slaves.[48][49]
Men, women, and child slaves were owned by Jackson on three sections of the Hermitage plantation. Slaves lived in extended family units of between five and ten persons and were quartered in 400 square feet (37 m2) cabins made either of brick or logs. The size and quality of the Hermitage slave quarters exceeded the standards of his times. To help slaves acquire food, Jackson supplied them with guns, knives, and fishing equipment. At times he paid his slaves with money and coins to trade in local markets. The Hermitage plantation was a profit-making enterprise. Jackson permitted slaves to be whipped to increase productivity or if he believed his slaves' offenses were severe enough.[49] At various times he posted advertisements for fugitive slaves who had escaped from his plantation. In one advertisement placed in the Tennessee Gazette in October 1804, Jackson offered "ten dollars extra, for every hundred lashes any person will give him, to the amount of three hundred."[50]
The controversy surrounding his marriage to Rachel remained a sore point for Jackson, who deeply resented attacks on his wife's honor. By May 1806, Charles Dickinson, who, like Jackson, raced horses, had published an attack on Jackson in the local newspaper, and it resulted in a written challenge from Jackson to a duel. Since Dickinson was considered an expert shot, Jackson determined it would be best to let Dickinson turn and fire first, hoping that his aim might be spoiled in his quickness; Jackson would wait and take careful aim at Dickinson. Dickinson did fire first, hitting Jackson in the chest. The bullet that struck Jackson was so close to his heart that it could not be removed. Under the rules of dueling, Dickinson had to remain still as Jackson took aim and shot and killed him. Jackson's behavior in the duel outraged many in Tennessee, who called it a brutal, cold-blooded killing and saddled Jackson with a reputation as a violent, vengeful man. He became a social outcast.[51]
After the Sevier affair and the duel, Jackson was looking for a way to salvage his reputation. He chose to align himself with former vice president Aaron Burr. Burr's political career ended after the killing of Alexander Hamilton in a duel in 1804; in 1805 he set out on a tour of what was then the western United States.[52] Burr was extremely well received by the people of Tennessee, and stayed for five days at the Hermitage.[53] Burr's true intentions are not known with certainty. He seems to have been planning a military operation to conquer Spanish Florida and drive the Spanish from Texas.[54] To many westerners like Jackson, the promise seemed enticing.[55] Western American settlers had long held bitter feelings towards Spain due to territorial disputes and their persistent failure to stop Indians living in Spanish territory from raiding American settlements.[56] On October 4, 1806, Jackson addressed the Tennessee militia, declaring that the men should be "at a moment's warning ready to march."[57] On the same day, he wrote to James Winchester, proclaiming that the United States "can conquer not only the Floridas [at that time there was an East Florida and a West Florida.], but all Spanish North America." He continued:
Jackson agreed to provide boats and other provisions for the expedition.[59] However, on November 10, he learned from a military captain that Burr's plans apparently included seizure of New Orleans, then part of the Louisiana Territory of the United States, and incorporating it, along with lands won from the Spanish, into a new empire. He was further outraged when he learned from the same man of the involvement of Brigadier General James Wilkinson, whom he deeply disliked, in the plan.[60] Jackson acted cautiously at first, but wrote letters to public officials, including President Thomas Jefferson, vaguely warning them about the scheme. In December, Jefferson, a political opponent of Burr, issued a proclamation declaring that a treasonous plot was underway in the West and calling for the arrest of the perpetrators. Jackson, safe from arrest because of his extensive paper trail, organized the militia. Burr was soon captured, and the men were sent home.[61] Jackson traveled to Richmond, Virginia, to testify on Burr's behalf in trial. The defense team decided against placing him on the witness stand, fearing his remarks were too provocative. Burr was acquitted of treason, despite Jefferson's efforts to have him convicted. Jackson endorsed James Monroe for president in 1808 against James Madison. The latter was part of the Jeffersonian wing of the Democratic-Republican Party.[62] Jackson lived relatively quietly at the Hermitage in the years after the Burr trial, eventually accumulating 640 acres of land.[63]
Military career
War of 1812
Creek campaign and treaty
Leading up to 1812, the United States found itself increasingly drawn into international conflict. Formal hostilities with Spain or France never materialized, but tensions with Britain increased for a number of reasons. Among these was the desire of many Americans for more land, particularly British Canada and Florida, the latter still controlled by Spain, Britain's European ally.[64] On June 18, 1812, Congress officially declared war on the United Kingdom of Great Britain and Ireland, beginning the War of 1812.[65] Jackson responded enthusiastically, sending a letter to Washington offering 2,500 volunteers.[66] However, the men were not called up for many months. Biographer Robert V. Remini claims that Jackson saw the apparent slight as payback by the Madison administration for his support of Burr and Monroe. Meanwhile, the United States military repeatedly suffered devastating defeats on the battlefield.[67]
On January 10, 1813, Jackson led an army of 2,071 volunteers[68] to New Orleans to defend the region against British and Native American attacks.[69][70][71] He had been instructed to serve under General Wilkinson, who commanded Federal forces in New Orleans. Lacking adequate provisions, Wilkinson ordered Jackson to halt in Natchez, then part of the Mississippi Territory, and await further orders. Jackson reluctantly obeyed.[72] The newly appointed Secretary of War, John Armstrong Jr., sent a letter to Jackson dated February 6 ordering him to dismiss his forces and to turn over his supplies to Wilkinson.[73] In reply to Armstrong on March 15, Jackson defended the character and readiness of his men, and promised to turn over his supplies. He also promised, instead of dismissing the troops without provisions in Natchez, to march them back to Nashville.[74] The march was filled with agony. Many of the men had fallen ill. Jackson and his officers turned over their horses to the sick.[75] He paid for provisions for the men out of his own pocket.[76] The soldiers began referring to their commander as "Hickory" because of his toughness, and Jackson became known as "Old Hickory".[77] The army arrived in Nashville within about a month. Jackson's actions earned him respect and praise from the people of Tennessee.[78] Jackson faced financial ruin, until his former aide-de-camp Thomas Benton persuaded Secretary Armstrong to order the army to pay the expenses Jackson had incurred.[79] On June 14, Jackson served as a second in a duel on behalf of his junior officer William Carroll against Jesse Benton, the brother of Thomas. On September 3, Jackson and his top cavalry officer, Brigadier General John Coffee, were involved in a street brawl with the Benton brothers. Jackson was severely wounded by Jesse with a gunshot to the shoulder.[80][81]
On August 30, 1813, a group of Muscogee (or Creek) called the Red Sticks, so named for the color of their war paint, perpetrated the Fort Mims massacre. During the massacre, hundreds of white American settlers and non-Red Stick Creeks were slaughtered. The Red Sticks, led by William Weatherford (also called Red Eagle) and Peter McQueen, had broken away from the rest of the Creek Confederacy, which wanted peace with the United States. They were allied with Tecumseh, a Shawnee chief who had launched Tecumseh's War against the United States, and who was fighting alongside the British. The resulting conflict became known as the Creek War.[70]
Jackson, with 2,500 American soldiers, was ordered to crush the Red Sticks. On October 10, he set out on the expedition, his arm still in a sling from fighting the Bentons. Jackson established Fort Strother as a supply base. On November 3, Coffee defeated a band of Red Sticks at the Battle of Tallushatchee.[82] Coming to the relief of friendly Creeks besieged by Red Sticks, Jackson won another decisive victory at the Battle of Talladega.[83] In the winter, Jackson, encamped at Fort Strother, faced a severe shortage of troops due to the expiration of enlistments and chronic desertions. He sent Coffee with the cavalry (which abandoned him) back to Tennessee to secure more enlistments. Jackson decided to combine his force with that of the Georgia militia, and marched to meet the Georgia troops. From January 22–24, 1814, while on their way, the Tennessee militia and allied Muscogee were attacked by the Red Sticks at the Battles of Emuckfaw and Enotachopo Creek. Jackson's troops repelled the attackers, but outnumbered, were forced to withdraw to Fort Strother.[84] Jackson, now with over 2,000 troops, marched most of his army south to confront the Red Sticks at a fortress they had constructed at a bend in the Tallapoosa River. Jackson, together with Lower Creek and Cherokee allies and enjoying an advantage of more than 2 to 1, engaged them on March 27 at the Battle of Horseshoe Bend. An initial artillery barrage did little damage to the well-constructed fort. A subsequent Infantry charge, in addition to an assault by Coffee's cavalry and diversions caused by the allied Creeks, overwhelmed the Red Sticks.[85]
The campaign ended three weeks later with Red Eagle's surrender, although some Red Sticks such as McQueen fled to East Florida.[86] On June 8, Jackson accepted a commission as brigadier general in the United States Army, and 10 days later became a major general, in command of the Seventh Military Division.[87] Subsequently, Jackson, with Madison's approval, imposed the Treaty of Fort Jackson. The treaty required the Muscogee, including those who had not joined the Red Sticks, to surrender 23 million acres (8,093,713 ha) of land to the United States.[86] Most of the Creeks bitterly acquiesced.[88] Though in ill-health from dysentery, Jackson then turned his attention to defeating Spanish and British forces. Jackson accused the Spanish of arming the Red Sticks and of violating the terms of their neutrality by allowing British soldiers into the Floridas.[89] The first charge was true,[90] while the second ignored the fact that it was Jackson's threats to invade Florida which had caused them to seek British protection.[91] In the November 7 Battle of Pensacola, Jackson defeated British and Spanish forces in a short skirmish. The Spanish surrendered and the British fled. Weeks later, he learned that the British were planning an attack on New Orleans, which sat on the mouth of the Mississippi River and held immense strategic and commercial value. Jackson abandoned Pensacola to the Spanish, placed a force in Mobile, Alabama, to guard against a possible invasion there, and rushed the rest of his force west to defend the city.[92]
The Creeks coined their own name for Jackson, Jacksa Chula Harjo or "Jackson, old and fierce."[93]
Battle of New Orleans
.jpg)
After arriving in New Orleans on December 1, 1814,[94] Jackson instituted martial law in the city, as he worried about the loyalty of the city's Creole and Spanish inhabitants. At the same time, he formed an alliance with Jean Lafitte's smugglers, and formed military units consisting of African-Americans and Muscogees,[95] in addition to recruiting volunteers in the city. Jackson received some criticism for paying white and non-white volunteers the same salary.[96] These forces, along with U.S. Army regulars and volunteers from surrounding states, joined with Jackson's force in defending New Orleans. The approaching British force, led by Admiral Alexander Cochrane and later General Edward Pakenham, consisted of up to 10,000 soldiers, many of whom had served in the Napoleonic Wars.[95] Jackson had only about 5,000 men, most of whom were inexperienced and poorly trained.[97]
The British arrived on the east bank of the Mississippi River on the morning of December 23. That evening, Jackson attacked the British and temporarily drove them back.[98] On January 8, 1815, the British launched a major frontal assault against Jackson's defenses. An initial artillery barrage by the British did little damage to the well-constructed American defenses. Once the morning fog had cleared, the British launched a frontal assault, and their troops made easy targets for the Americans protected by their parapets. Despite managing to temporarily drive back the American right flank, the overall attack ended in disaster.[99] For the battle on January 8, Jackson admitted to only 71 total casualties. Of these, 13 men were killed, 39 wounded, and 19 missing or captured. The British admitted 2,037 casualties. Of these, 291 men were killed (including Pakenham), 1,262 wounded, and 484 missing or captured.[100] After the battle, the British retreated from the area, and open hostilities ended shortly thereafter when word spread that the Treaty of Ghent had been signed in Europe that December. Coming in the waning days of the war, Jackson's victory made him a national hero, as the country celebrated the end of what many called the "Second American Revolution" against the British.[101] By a Congressional resolution on February 27, 1815, Jackson was given the Thanks of Congress and awarded a Congressional Gold Medal.[38]
Alexis de Tocqueville ("underwhelmed" by Jackson according to a 2001 commentator) later wrote in Democracy in America that Jackson "was raised to the Presidency, and has been maintained there, solely by the recollection of a victory which he gained, twenty years ago, under the walls of New Orleans."[102] Some have claimed that, because the war was already ended by the preliminary signing of the Treaty of Ghent, Jackson's victory at New Orleans was without importance aside from making him a celebrated figure. However, the Spanish, who had sold the Louisiana Territory to France, disputed France's right to sell it to the United States through the Louisiana Purchase in 1803.[103] In April 1815, Spain, assuming that the British had won at New Orleans, asked for the return of the Louisiana Territory. Spanish representatives claimed to have been assured that they would receive the land back.[104] Furthermore, Article IX of the Treaty of Ghent stipulated that the United States must return land taken from the Creeks to their original owners, essentially undoing the Treaty of Fort Jackson. Thanks to Jackson's victory at New Orleans, the American government felt that it could safely ignore that provision and it kept the lands that Jackson had acquired.[103]
Enforced martial law in New Orleans
Jackson, still not knowing for certain of the treaty's signing, refused to lift martial law in the city. State senator Louis Louaillier had written an anonymous piece in the New Orleans newspaper, challenging Jackson's refusal to release the militia after the British ceded the field of battle. Jackson attempted to find the author and, after Louiallier admitted to having written the piece, he was imprisoned.[105] In March 1815, after U.S. District Court Judge Dominic A. Hall signed a writ of habeas corpus on behalf of Louaillier, Jackson ordered Hall's arrest.[106] Jackson did not relent his campaign of suppressing dissent until after ordering the arrest of a Louisiana legislator, a federal judge, and a lawyer, and after the intervention of State Judge Joshua Lewis. Lewis was simultaneously serving under Jackson in the militia, and also had signed a writ of habeas corpus against Jackson, his commanding officer, seeking Judge Hall's release.[107]
Civilian authorities in New Orleans had reason to fear Jackson—he summarily ordered the execution of six members of the militia who had attempted to leave. Their deaths were not well publicized until the Coffin Handbills were circulated during his 1828 presidential campaign.[108]
First Seminole War
Following the war, Jackson remained in command of troops on the southern border of the U.S. He conducted business from the Hermitage.[109] He signed treaties with the Cherokee and Chickasaw which gained for the United States large parts of Tennessee and Kentucky.[110] The treaty with the Chickasaw, finally agreed to later in the year, is commonly known as the Jackson Purchase.[34]
Jackson would soon find himself embroiled in another conflict in the Floridas. Several Native American tribes, collectively known as the Seminole, straddled the border between the U.S. and Florida. The Seminole, in alliance with escaped slaves, frequently raided Georgia settlements before retreating back into Florida. These skirmishes continually escalated into the conflict now known as the First Seminole War.[111] In 1816, Jackson led a detachment into Florida and at the Battle of Negro Fort destroyed the community of escaped slaves and their descendants.[112] Jackson was then ordered by President Monroe in December 1817 to lead a campaign in Georgia against the Seminole and Creek. Jackson was also charged with preventing Florida from becoming a refuge for runaway slaves, after Spain promised freedom to fugitive slaves. Critics later alleged that Jackson exceeded orders in his Florida actions. His orders from President Monroe were to "terminate the conflict."[113] Jackson believed the best way to do this was to seize Florida from Spain once and for all. Before departing, Jackson wrote to Monroe, "Let it be signified to me through any channel ... that the possession of the Floridas would be desirable to the United States, and in sixty days it will be accomplished."[114]
Jackson invaded Florida on March 15, 1818, capturing Pensacola. He crushed Seminole and Spanish resistance in the region and captured two British agents, Robert Ambrister and Alexander Arbuthnot, who had been working with the Seminole. After a brief trial, Jackson executed both of them, causing a diplomatic incident with the British. Jackson's actions polarized Monroe's cabinet, some of whom argued that Jackson had gone against Monroe's orders and violated the Constitution, since the United States had not declared war upon Spain. He was defended by Secretary of State John Quincy Adams. Adams thought that Jackson's conquest of Florida would force Spain to finally sell the province, and Spain did indeed sell Florida to the United States in the Adams–OnÃs Treaty of 1819. A congressional investigation exonerated Jackson, but he was deeply angered by the criticism he received, particularly from Speaker of the House Henry Clay. After the ratification of the Adams–OnÃs Treaty in 1821, Jackson resigned from the army and briefly served as the territorial Governor of Florida before returning to Tennessee.[115]
Presidential aspirations
Election of 1824
In the spring of 1822, Jackson suffered a physical breakdown. His body had two bullets lodged in it, and he had grown exhausted from years of hard military campaigning. He regularly coughed up blood, and his entire body shook. Jackson feared that he was on the brink of death. After several months of rest, he recovered.[116] During his convalescence, Jackson's thoughts increasingly turned to national affairs. He obsessed over rampant corruption in the Monroe administration and grew to detest the Second Bank of the United States, blaming it for causing the Panic of 1819 by contracting credit.[117]
Jackson turned down an offer to run for governor of his home state, but accepted John Overton's plan to have the legislature nominate him for president.[118] On July 22, 1822, he was officially nominated by the Tennessee legislature.[119] Jackson had come to dislike Secretary of the Treasury William H. Crawford, who had been the most vocal critic of Jackson in Monroe's cabinet, and he hoped to prevent Tennessee's electoral votes from going to Crawford. Yet Jackson's nomination garnered a welcoming response even outside of Tennessee, as many Americans appreciated his attacks on banks. The Panic of 1819 had devastated the fortunes of many, and banks and politicians seen as supportive of banks were unpopular. With his growing political viability, Jackson emerged as one of the five major presidential candidates, along with Crawford, Adams, Clay, and Secretary of War John C. Calhoun. During the Era of Good Feelings, the Federalist Party had faded away, and all five presidential contenders were members of the Democratic-Republican Party. Jackson's campaign promoted him as a defender of the common people, as well as the one candidate who could rise above sectional divisions. On the major issues of the day, most prominently the tariff, Jackson expressed centrist beliefs, and opponents accused him of obfuscating his positions. At the forefront of Jackson's campaign was combatting corruption. Jackson vowed to restore honesty in government and to scale back its excesses.[120] As a war hero, Jackson was popular with ordinary people, and he benefited from the expansion of suffrage among white males that followed the conclusion of the War of 1812.[121]
In 1823, Jackson reluctantly allowed his name to be placed in contention for one of Tennessee's U.S. Senate seats. The move was independently orchestrated by his advisors William Berkeley Lewis and U.S. senator John Eaton in order to defeat incumbent John Williams, who openly opposed his presidential candidacy. The legislature narrowly elected him.[122][123] His return, after 24 years, 11 months, 3 days out of office, marks the second longest gap in service to the chamber in history.[124] Although Jackson was reluctant to serve once more in the Senate, he was appointed chairman of the Committee on Military Affairs.[125] Eaton wrote to Rachel that Jackson as a senator was "in harmony and good understanding with every body," including Thomas Hart Benton, now a senator from Missouri, with whom Jackson had fought in 1813.[126] Meanwhile, Jackson himself did little active campaigning for the presidency, as was customary. Eaton updated an already-written biography of him in preparation for the campaign and, along with others, wrote letters to newspapers praising Jackson's record and past conduct.[127]
Democratic-Republican presidential nominees had historically been chosen by informal Congressional nominating caucuses, but this method had become unpopular. In 1824, most of the Democratic-Republicans in Congress boycotted the caucus. Those who attended backed Crawford for president and Albert Gallatin for vice president. A Pennsylvania convention nominated Jackson for president a month later, stating that the irregular caucus ignored the "voice of the people" in the "vain hope that the American people might be thus deceived into a belief that he [Crawford] was the regular democratic candidate."[128] Gallatin criticized Jackson as "an honest man and the idol of the worshipers of military glory, but from incapacity, military habits, and habitual disregard of laws and constitutional provisions, altogether unfit for the office."[129] After Jackson won the Pennsylvania nomination, Calhoun dropped out of the presidential race and successfully sought the vice presidency instead.[130]
In the presidential election, Jackson won a plurality of the electoral vote, taking states in the South, West, and Mid-Atlantic. He was the only candidate to win states outside of his regional base, as Adams dominated New England, Clay took three western states, and Crawford won Virginia and Georgia. Jackson won a plurality of the popular vote, taking 42 percent, although not all states held a popular vote for the presidency. He won 99 electoral votes, more than any other candidate, but still short of 131, which he needed for a true majority. With no candidate having won a majority of the electoral votes, the House of Representatives held a contingent election under the terms of the Twelfth Amendment. The amendment specifies that only the top three electoral vote-winners are eligible to be elected by the House, so Clay was eliminated from contention. Jackson believed that he was likely to win this contingent election, as Crawford and Adams lacked Jackson's national appeal, and Crawford had suffered a debilitating stroke that made many doubt his physical fitness for the presidency. Clay, who as Speaker of the House presided over the election, saw Jackson as a dangerous demagogue who might topple the republic in favor of his own leadership. He threw his support behind Adams, who shared Clay's support for federally funded internal improvements such as roads and canals. With Clay's backing, Adams won the contingent election on the first ballot. Furious supporters of Jackson accused Clay and Adams of having reached a "corrupt bargain" after Adams appointed Clay as his Secretary of State.[131] "So you see," Jackson growled, "the Judas of the West has closed the contract and receive the thirty pieces of silver. [H]is end will be the same."[132] After the Congressional session concluded, Jackson resigned his Senate seat and returned to Tennessee.[133]
Election of 1828 and death of Rachel Jackson
Almost immediately, opposition arose to the Adams presidency.[134] Jackson opposed Adams's plan to involve the U.S. in Panama's quest for independence, writing, "The moment we engage in confederations, or alliances with any nation, we may from that time date the down fall of our republic." Adams damaged his standing in his first annual message to Congress, when he argued that Congress must not give the world the impression "that we are palsied by the will of our constituents."[135]
Jackson was nominated for president by the Tennessee legislature in October 1825, more than three years before the 1828 election. It was the earliest such nomination in presidential history, and it attested to the fact that Jackson's supporters began the 1828 campaign almost as soon as the 1824 campaign ended. Adams's presidency foundered, as his ambitious agenda faced defeat in a new era of mass politics. Critics led by Jackson attacked Adams's policies as a dangerous expansion of Federal power. New York Senator Martin Van Buren, who had been a prominent supporter of Crawford in 1824, emerged as one of the strongest opponents of Adams's policies, and he settled on Jackson as his preferred candidate in 1828. Van Buren was joined by Vice President Calhoun, who opposed much of Adams's agenda on states' rights grounds. Van Buren and other Jackson allies established numerous pro-Jackson newspapers and clubs around the country, while Jackson avoided campaigning but made himself available to visitors at his Hermitage plantation. In the election, Jackson won a commanding 56 percent of the popular vote and 68 percent of the electoral vote. The election marked the definitive end of the one-party Era of Good Feelings, as Jackson's supporters coalesced into the Democratic Party and Adams's followers became known as the National Republicans.[136] In the large Scots-Irish community that was especially numerous in the rural South and Southwest, Jackson was a favorite.[137]
The campaign was heavily personal. As was the custom at the time, neither candidate personally campaigned, but their political followers organized campaign events. Both candidates were rhetorically attacked in the press. Jackson was labelled a slave trader who bought and sold slaves and moved them about in defiance of higher standards of slaveholder behavior.[138] A series of pamphlets known as the Coffin Handbills were published to attack Jackson, one of which revealed his order to execute soldiers at New Orleans.[108][139] Another accused him of engaging in cannibalism by eating the bodies of American Indians killed in battle,[140] while still another labeled his mother a "common prostitute" and stated that Jackson's father was a "mulatto man."[141]
Rachel Jackson was also a frequent target of attacks, and was widely accused of bigamy, a reference to the controversial situation of her marriage with Jackson.[142] Jackson's campaigners fired back by claiming that while serving as Minister to Russia, Adams had procured a young girl to serve as a prostitute for Emperor Alexander I. They also stated that Adams had a billiard table in the White House and that he had charged the government for it.[143]
Rachel had been under extreme stress during the election, and often struggled while Jackson was away. She began experiencing significant physical stress during the election season. Jackson described her symptoms as "excruciating pain in the left shoulder, arm, and breast." After struggling for three days, Rachel finally died of a heart attack on December 22, 1828, three weeks after her husband's victory in the election (which began on October 31 and ended on December 2) and 10 weeks before Jackson took office as president. A distraught Jackson had to be pulled from her so the undertaker could prepare the body.[144] He felt that the abuse from Adams's supporters had hastened her death and never forgave him. Rachel was buried at the Hermitage on Christmas Eve. "May God Almighty forgive her murderers, as I know she forgave them" Jackson swore at her funeral. "I never can."[145]
Presidency (1829–1837)
Philosophy
Jackson's name has been associated with Jacksonian democracy or the shift and expansion of democracy with the passing of some political power from established elites to ordinary voters based in political parties. "The Age of Jackson" shaped the national agenda and American politics.[146] Jackson's philosophy as president was similar to that of Jefferson, advocating republican values held by the Revolutionary generation. Jackson took a moral tone, with the belief that agrarian sympathies, and strong states rights with a limited federal government, would produce less corruption.[147] He feared that monied and business interests would corrupt republican values. When South Carolina opposed the tariff law, he took a strong line in favor of nationalism and against secession.[148]
Jackson believed in the ability of the people to "arrive at right conclusions."[149] They had the right not only to elect but to "instruct their agents & representatives."[150] Office holders should either obey the popular will or resign.[147] He rejected the view of a powerful and independent Supreme Court with binding decisions, arguing that "the Congress, the Executive, and the Court must each or itself be guided by its own opinions of the Constitution."[151] Jackson thought that Supreme Court justices should be made to stand for election, and believed in strict constructionism as the best way to ensure democratic rule.[152] He called for term limits on presidents and the abolition of the Electoral College.[153] According to Robert V. Remini, Jackson "was far ahead of his times–and maybe even further than this country can ever achieve."[154]
Inauguration
Jackson departed from the Hermitage on January 19 and arrived in Washington on February 11. He then set about choosing his cabinet members.[155] Jackson chose Van Buren as expected for Secretary of State, Eaton of Tennessee as Secretary of War, Samuel D. Ingham of Pennsylvania as Secretary of Treasury, John Branch of North Carolina as Secretary of Navy, John M. Berrien of Georgia as Attorney General, and William T. Barry of Kentucky as Postmaster General. Jackson's first choice of cabinet proved to be unsuccessful, full of bitter partisanship and gossip.[156] Jackson blamed Adams in part for what was said about Rachel during the campaign, and refused to meet him after arriving in Washington. Therefore, Adams chose not to attend the inauguration.[157]
On March 4, 1829, Andrew Jackson became the first United States president-elect to take the oath of office on the East Portico of the U.S. Capitol.[158] In his inaugural speech, Jackson promised to respect the sovereign powers of states and the constitutional limits of the presidency. He also promised to pursue "reform" by removing power from "unfaithful or incompetent hands." At the conclusion of the ceremony, Jackson invited the public to the White House, where his supporters held a raucous party. Thousands of spectators overwhelmed the White House staff, and minor damage was caused to fixtures and furnishings. Jackson's populism earned him the nickname "King Mob."[159]
Reforms, rotation of offices, and spoils system
In an effort to purge the government of corruption, Jackson launched presidential investigations into all executive Cabinet offices and departments. He believed appointees should be hired on merit and withdrew many candidates he believed were lax in their handling of monies.[160] He believed that the federal government had been corrupted and that he had received a mandate from the American people to purge such corruption. Jackson's investigations uncovered enormous fraud in the federal government, and numerous officials were removed from office and indicted on corruption, including personal friend of John Quincy Adams and Treasury Fourth Auditor Tobias Watkins.[161][162] In the first year of Jackson's presidency, his investigations uncovered $280,000 stolen from the Treasury, and the Department of the Navy was saved $1 million.[162] He asked Congress to reform embezzlement laws, reduce fraudulent applications for federal pensions, pass revenue laws to prevent evasion of custom duties, and pass laws to improve government accounting. Jackson's Postmaster General Barry resigned after a Congressional investigation into the postal service revealed mismanagement of mail services, collusion and favoritism in awarding lucrative contracts, as well as failure to audit accounts and supervise contract performances. Jackson replaced Barry with Treasury Auditor and prominent Kitchen Cabinet member Amos Kendall, who went on to implement much needed reforms in the Post Office Department.[163]
.jpg)
Jackson repeatedly called for the abolition of the Electoral College by constitutional amendment in his annual messages to Congress as president.[164][165] In his third annual message to Congress, he expressed the view "I have heretofore recommended amendments of the Federal Constitution giving the election of President and Vice-President to the people and limiting the service of the former to a single term. So important do I consider these changes in our fundamental law that I can not, in accordance with my sense of duty, omit to press them upon the consideration of a new Congress."[153]
Although he was unable to implement these goals, Jackson's time in office did see a variety of other reforms. He supported an act in July 1836 that enabled widows of Revolutionary War soldiers who met certain criteria to receive their husbands' pensions.[166] In 1836, Jackson established the ten-hour day in national shipyards.[167]
Jackson enforced the Tenure of Office Act, signed by President Monroe in 1820, that limited appointed office tenure and authorized the president to remove and appoint political party associates. Jackson believed that a rotation in office was a democratic reform preventing hereditary officeholding and made civil service responsible to the popular will.[168] Jackson declared that rotation of appointments in political office was "a leading principle in the republican creed."[164] Jackson noted, "In a country where offices are created solely for the benefit of the people no one man has any more intrinsic right to official station than another."[169] Jackson believed that rotating political appointments would prevent the development of a corrupt bureaucracy. The number of federal office holders removed by Jackson were exaggerated by his opponents; Jackson rotated only about 20% of federal office holders during his first term, some for dereliction of duty rather than political purposes.[170] Jackson, nonetheless, used his presidential power to award loyal Democrats by granting them federal office appointments. Jackson's approach incorporated patriotism for country as qualification for holding office. Having appointed a soldier who had lost his leg fighting on the battlefield to postmaster, Jackson stated, "[i]f he lost his leg fighting for his country, that is ... enough for me."[171]
Jackson's theory regarding rotation of office generated what would later be called the spoils system.[168] The political realities of Washington sometimes forced Jackson to make partisan appointments despite his personal reservations.[172] Supervision of bureaus and departments whose operations were outside of Washington (such as the New York Customs House; the Postal Service; the Departments of Navy and War; and the Bureau of Indian Affairs, whose budget had increased enormously in the previous two decades) proved to be difficult.[173] Remini writes that because "friendship, politics, and geography constituted the President's total criteria for appointments, most of his appointments were predictably substandard."[174]
Petticoat affair
Jackson devoted a considerable amount of his presidential time during his early years in office responding to what came to be known as the "Petticoat affair" or "Eaton affair."[175] Washington gossip circulated among Jackson's cabinet members and their wives, including Calhoun's wife Floride Calhoun, concerning Secretary of War Eaton and his wife Peggy Eaton. Salacious rumors held that Peggy, as a barmaid in her father's tavern, had been sexually promiscuous or had even been a prostitute.[176] Controversy also ensued because Peggy had married soon after her previous husband's death, and it was alleged that she and her husband had engaged in an adulterous affair while her previous husband was still living.[177] Petticoat politics emerged when the wives of cabinet members, led by Mrs. Calhoun, refused to socialize with the Eatons. Allowing a prostitute in the official family was unthinkable—but Jackson refused to believe the rumors, telling his Cabinet that "She is as chaste as a virgin!"[176] Jackson believed that the dishonorable people were the rumormongers, who in essence questioned and dishonored Jackson himself by, in attempting to drive the Eatons out, daring to tell him who he could and could not have in his cabinet. Jackson was also reminded of the attacks that were made against his wife. These memories increased his dedication to defending Peggy Eaton.[178]
Meanwhile, the cabinet wives insisted that the interests and honor of all American women was at stake. They believed a responsible woman should never accord a man sexual favors without the assurance that went with marriage. A woman who broke that code was dishonorable and unacceptable. Historian Daniel Walker Howe notes that this was the feminist spirit that in the next decade shaped the woman's rights movement. Secretary of State Martin Van Buren, a widower, was already forming a coalition against Calhoun. He could now see his main chance to strike hard; he took the side of Jackson and Eaton.[179]
In the spring of 1831, Jackson, at Van Buren's suggestion, demanded the resignations of all the cabinet members except Barry. Van Buren himself resigned to avoid the appearance of bias. In 1832, Jackson nominated Van Buren to be Minister to Great Britain. Calhoun blocked the nomination with a tie-breaking vote against it, claiming the defeated nomination would "... kill him [Van Buren] dead, sir, kill him dead. He will never kick, sir, never kick."[180] Van Buren continued to serve as an important adviser to Jackson and was placed on the ticket for vice president in the 1832 election, making him Jackson's heir-apparent.[130] The Petticoat affair led to the development of the Kitchen Cabinet. The Kitchen Cabinet emerged as an unofficial group of advisors to the president. Its existence was partially rooted in Jackson's difficulties with his official cabinet, even after the purging.[181]
Indian removal policy
Throughout his eight years in office, Jackson made about 70 treaties with American Indian tribes both in the South and in the Northwest.[182] Jackson's presidency marked the beginning of a policy of Indian removal.[180] Jackson himself sometimes participated in the treaty negotiating process, though other times he left the negotiations to his subordinates. The southern tribes included the Choctaw, Creek, Chickasaw, Seminole and the Cherokee. The northwest tribes include the Chippewa, Ottawa, and the Potawatomi.[183]
Relations between Indians and whites increasingly grew tense and sometimes violent as a result of territorial conflicts.[180] Previous presidents had at times supported removal or attempts to "civilize" Native people,[184] but generally let the problem play itself out with minimal intervention. But by Jackson's time, a growing popular and political movement developed wanting action on the issue, and out of this came policy decisions to relocate certain Indian populations. Jackson, never known for timidity, became an advocate for this relocation policy in what many historians consider the most controversial aspect of his presidency.[180]
In his First Annual Message to Congress, Jackson advocated land west of the Mississippi River be set aside for Indian tribes. On May 26, 1830, Congress passed the Indian Removal Act, which Jackson signed into law two days later. The Act authorized the president to negotiate treaties to buy tribal lands in the east in exchange for lands farther west, outside of existing state borders.[182] The act specifically pertained to the Five Civilized Tribes in the South, the conditions being that they could either move west or stay and obey state law, effectively relinquishing their sovereignty.[185]
Jackson, Eaton, and General Coffee negotiated with the Chickasaw, who quickly agreed to move.[186] Jackson put Eaton and Coffee in charge of negotiating with the Choctaw. Lacking Jackson's skills at negotiation, they simply bribed various leaders in order to gain their agreement. The tactics worked, and with the Treaty of Dancing Rabbit Creek, the Choctaw were required to move. The removal of the Choctaw took place in the winter of 1831 and 1832, and was wrought with misery and suffering.[187] The Seminole, despite the signing of the Treaty of Payne's Landing in 1832,[188] refused to move. In December 1835, this dispute began the Second Seminole War. The war lasted over six years, finally ending in 1842.[183] Members of the Creek Nation had signed the Treaty of Cusseta in 1832, allowing the Creek to either sell or retain their land.[189] Conflict later erupted between the Creek who remained and the white settlers, leading to a second Creek War.[190] A common complaint amongst the tribes was that the men who had signed the treaties did not represent the whole tribe.[183][190]
The state of Georgia became involved in a dispute with the Cherokee, culminating in the 1832 Supreme Court decision in Worcester v. Georgia. Chief Justice John Marshall, writing for the court, ruled that Georgia could not forbid whites from entering tribal lands, as it had attempted to do with two missionaries supposedly stirring up resistance amongst the tribespeople.[191] Jackson is frequently attributed the following response: "John Marshall has made his decision, now let him enforce it." The quote, apparently indicating Jackson's dismissive view of the courts, was attributed to Jackson by Horace Greeley, who cited as his source Representative George N. Briggs. Remini argues that Jackson did not say it because, while it "certainly sounds like Jackson...[t]here was nothing for him to enforce." This is because a writ of habeas corpus had never been issued for the missionaries.[192] The Court also did not ask federal marshals to carry out the decision, as had become standard.[193]
A group of Cherokees led by John Ridge negotiated the Treaty of New Echota. Ridge was not a widely recognized leader of the Cherokee, and this document was rejected by some as illegitimate.[194] Another faction, led by John Ross, unsuccessfully petitioned to protest the proposed removal.[195] The Cherokee largely considered themselves independent, and not subject to the laws of the United States or Georgia.[196] The treaty was enforced by Jackson's successor, Van Buren. Subsequently, as many as 4,000 out of 18,000 Cherokee died on the "Trail of Tears" in 1838.[197]
More than 45,000 people were relocated, primarily to Indian territory in present-day Oklahoma during Jackson's administration, though some Cherokee people walked back afterwards, and others evaded removal by migrating into the Great Smoky Mountains.[198]
Another conflict during the Jackson administration was the Black Hawk War in 1832 after a group of Sauk and other tribal nations known collectively as the British Banda crossed into Illinois from Iowa, which at the time was still Indian country.[199]
Nullification crisis
In 1828, Congress had approved the "Tariff of Abominations", which set the tariff at a historically high rate. Southern planters, who sold their cotton on the world market, strongly opposed this tariff, which they saw as favoring northern interests. The South now had to pay more for goods it did not produce locally; and other countries would have more difficulty affording southern cotton. The issue came to a head during Jackson's presidency, resulting in the Nullification Crisis, in which South Carolina threatened disunion.[200]
The South Carolina Exposition and Protest of 1828, secretly written by Calhoun, asserted that their state had the right to "nullify"—declare void—the tariff legislation of 1828. Although Jackson sympathized with the South in the tariff debate, he also vigorously supported a strong union, with effective powers for the central government. Jackson attempted to face down Calhoun over the issue, which developed into a bitter rivalry between the two men. One incident came at the April 13, 1830, Jefferson Day dinner, involving after-dinner toasts. Robert Hayne began by toasting to "The Union of the States, and the Sovereignty of the States." Jackson then rose, and in a booming voice added "Our federal Union: It must be preserved!" – a clear challenge to Calhoun. Calhoun clarified his position by responding "The Union: Next to our Liberty, the most dear!"[201]
In May 1830, Jackson discovered that Calhoun had asked President Monroe to censure Jackson for his invasion of Spanish Florida in 1818 while Calhoun was serving as Secretary of War. Calhoun's and Jackson's relationship deteriorated further. By February 1831, the break between Calhoun and Jackson was final. Responding to inaccurate press reports about the feud, Calhoun had published letters between him and Jackson detailing the conflict in the United States Telegraph. Jackson and Calhoun began an angry correspondence which lasted until Jackson stopped it in July.[130] The Telegraph, edited by Duff Green, initially supported Jackson. After it sided with Calhoun on nullification, Jackson needed a new organ for the administration. He enlisted the help of longtime supporter Francis Preston Blair, who in November 1830 established a newspaper known as the Washington Globe, which from then on served as the primary mouthpiece of the Democratic Party.[202]
Jackson supported a revision to tariff rates known as the Tariff of 1832. It was designed to placate the nullifiers by lowering tariff rates. Written by Treasury Secretary Louis McLane, the bill lowered duties from 45% to 27%. In May, Representative John Quincy Adams introduced a slightly revised version of the bill, which Jackson accepted. It passed Congress on July 9 and was signed by the president on July 14. The bill failed to satisfy extremists on either side.[203] On November 24, the South Carolina legislature nullified both the Tariff of 1832 and the Tariff of 1828.[204] In response, Jackson sent U.S. Navy warships to Charleston harbor, and threatened to hang any man who worked to support nullification or secession.[205] On December 28, 1832, Calhoun resigned as vice president, after having been elected to the U.S. Senate.[206][b] This was part of a strategy whereby Calhoun, with less than three months remaining on his vice presidential term, would replace Robert Y. Hayne in the Senate, and he would then become governor of South Carolina. Hayne had often struggled to defend nullification on the floor of the Senate, especially against fierce criticism from Senator Daniel Webster of Massachusetts.[208]
Also that December, Jackson issued a resounding proclamation against the "nullifiers," stating that he considered "the power to annul a law of the United States, assumed by one State, incompatible with the existence of the Union, contradicted expressly by the letter of the Constitution, unauthorized by its spirit, inconsistent with every principle on which it was founded, and destructive of the great object for which it was formed." South Carolina, the president declared, stood on "the brink of insurrection and treason," and he appealed to the people of the state to reassert their allegiance to that Union for which their ancestors had fought. Jackson also denied the right of secession: "The Constitution ... forms a government not a league ... To say that any State may at pleasure secede from the Union is to say that the United States are not a nation."[209] Jackson tended to personalize the controversy, frequently characterizing nullification as a conspiracy between disappointed and bitter men whose ambitions had been thwarted.[210]
Jackson asked Congress to pass a "Force Bill" explicitly authorizing the use of military force to enforce the tariff. It was introduced by Senator Felix Grundy of Tennessee, and was quickly attacked by Calhoun as "military despotism."[211] At the same time, Calhoun and Clay began to work on a new compromise tariff. A bill sponsored by the administration had been introduced by Representative Gulian C. Verplanck of New York, but it lowered rates more sharply than Clay and other protectionists desired. Clay managed to get Calhoun to agree to a bill with higher rates in exchange for Clay's opposition to Jackson's military threats and, perhaps, with the hope that he could win some Southern votes in his next bid for the presidency.[212] The Compromise Tariff passed on March 1, 1833.[213] The Force Bill passed the same day. Calhoun, Clay, and several others marched out of the chamber in opposition, the only dissenting vote coming from John Tyler of Virginia.[214] The new tariff was opposed by Webster, who argued that it essentially surrendered to South Carolina's demands.[215] Jackson, despite his anger over the scrapping of the Verplanck bill and the new alliance between Clay and Calhoun, saw it as an efficient way to end the crisis. He signed both bills on March 2, starting with the Force Bill.[216] The South Carolina Convention then met and rescinded its nullification ordinance, but in a final show of defiance, nullified the Force Bill.[213] On May 1, Jackson wrote, "the tariff was only the pretext, and disunion and southern confederacy the real object. The next pretext will be the negro, or slavery question."[213]
Foreign affairs
Addressing the subject of foreign affairs in his First Annual Address to Congress, Jackson declared it to be his "settled purpose to ask nothing that is not clearly right and to submit to nothing that is wrong."[164]
When Jackson took office, spoliation claims, or compensation demands for the capture of American ships and sailors, dating from the Napoleonic era, caused strained relations between the U.S. and French governments. The French Navy had captured and sent American ships to Spanish ports while holding their crews captive forcing them to labor without any charges or judicial rules. According to Secretary of State Martin Van Buren, relations between the U.S. and France were "hopeless."[217] Jackson's Minister to France, William C. Rives, through diplomacy was able to convince the French government to sign a reparations treaty on July 4, 1831, that would award the U.S. ₣ 25,000,000 ($5,000,000) in damages.[218] The French government became delinquent in payment due to internal financial and political difficulties. The French king Louis Philippe I and his ministers blamed the French Chamber of Deputies. By 1834, the non-payment of reparations by the French government drew Jackson's ire and he became impatient. In his December 1834 State of the Union address, Jackson sternly reprimanded the French government for non-payment, stating the federal government was "wholly disappointed" by the French, and demanded Congress authorize trade reprisals against France.[219] Feeling insulted by Jackson's words, the French people began pressuring their government not to pay the indemnity until Jackson had apologized for his remarks.[220] In his December 1835 State of the Union Address, Jackson refused to apologize, stating he had a good opinion of the French people and his intentions were peaceful. Jackson described in lengthy and minute detail the history of events surrounding the treaty and his belief that the French government was purposely stalling payment. The French accepted Jackson's statements as sincere and in February 1836, reparations were paid.[221]
In addition to France, the Jackson administration successfully settled spoliation claims with Denmark, Portugal, and Spain. Jackson's state department was active and successful at making trade agreements with Russia, Spain, Turkey, the United Kingdom, and Siam. Under the treaty with the United Kingdom, American trade was reopened in the West Indies. The trade agreement with Siam was America's first treaty between the United States and an Asiatic country. As a result, American exports increased 75% while imports increased 250%.[221]
Jackson's attempt to purchase Texas from Mexico for $5,000,000 failed. The chargé d'affaires in Mexico, Colonel Anthony Butler, suggested that the U.S. take Texas over militarily, but Jackson refused. Butler was later replaced toward the end of Jackson's presidency. In 1835, the Texas Revolution began when pro-slavery American settlers in Texas fought the Mexican government for Texan independence. By May 1836, they had routed the Mexican military, establishing an independent Republic of Texas. The new Texas government legalized slavery and demanded recognition from President Jackson and annexation into the United States. Jackson was hesitant in recognizing Texas, unconvinced that the new republic could maintain independence from Mexico, and not wanting to make Texas an anti-slavery issue during the 1836 election. The strategy worked; the Democratic Party and national loyalties were held intact, and Van Buren was elected president. Jackson formally recognized the Republic of Texas, nominating Alcée Louis la Branche as chargé d'affaires on the last full day of his presidency, March 3, 1837.[221]
Jackson failed in his efforts to open trade with China and Japan and was unsuccessful at thwarting the United Kingdom's presence and power in South America.[221]
Bank veto and election of 1832
The 1832 presidential election demonstrated the rapid development and organization of political parties during this time period. The Democratic Party's first national convention, held in Baltimore, nominated Jackson's choice for vice president, Van Buren. The National Republican Party, who had held their first convention in Baltimore earlier in December 1831, nominated Henry Clay, now a senator from Kentucky, and John Sergeant of Pennsylvania.[222] The Anti-Masonic Party emerged by capitalizing on opposition to Freemasonry, which existed primarily in New England, after the disappearance and possible murder of William Morgan.[223] The party, which had earlier held its convention also in Baltimore in September 1831, nominated William Wirt of Maryland and Amos Ellmaker of Pennsylvania. Clay was, like Jackson, a Mason, and so some anti-Jacksonians who would have supported the National Republican Party supported Wirt instead.[224]
In 1816, the Second Bank of the United States was chartered by President James Madison to restore the United States economy devastated by the War of 1812.[225] Monroe had appointed Nicholas Biddle as the Bank's executive.[226] Jackson believed that the Bank was a fundamentally corrupt monopoly. Its stock was mostly held by foreigners, he insisted, and it exerted an unfair amount of control over the political system. Jackson used the issue to promote his democratic values, believing the Bank was being run exclusively for the wealthy. Jackson stated the Bank made "the rich richer and the potent more powerful."[226] He accused it of making loans with the intent of influencing elections.[227] In his address to Congress in 1830, Jackson called for a substitute for the Bank that would have no private stockholders and no ability to lend or purchase land. Its only power would be to issue bills of exchange.[228] The address touched off fiery debate in the Senate. Thomas Hart Benton, now a strong supporter of the president despite the brawl years earlier, gave a speech excoriating the Bank and calling for debate on its recharter. Webster led a motion to narrowly defeat the resolution. Shortly afterward, the Globe announced that Jackson would stand for reelection.[229]
Despite his misgivings about the Bank, Jackson supported a plan proposed in late 1831 by his moderately pro-Bank Treasury Secretary Louis McLane, who was secretly working with Biddle, to recharter a reformed version of the Bank in a way that would free up funds which would in turn be used to strengthen the military or pay off the nation's debt. This would be done, in part, through the sale of government stock in the Bank. Over the objections of Attorney General Roger B. Taney, an irreconcilable opponent of the Bank, he allowed McLane to publish a Treasury Report which essentially recommended rechartering the Bank.[230]
Clay hoped to make the Bank an issue in the election, so as to accuse Jackson of going beyond his powers if he vetoed a recharter bill. He and Webster urged Biddle to immediately apply for recharter rather than wait to reach a compromise with the administration.[231] Biddle received advice to the contrary from moderate Democrats such as McLane and William Lewis, who argued that Biddle should wait because Jackson would likely veto the recharter bill. On January 6, 1832, Biddle submitted to Congress a renewal of the Bank's charter without any of the proposed reforms.[232] The submission came four years before the original 20-year charter was to end. Biddle's recharter bill passed the Senate on June 11 and the House on July 3, 1832.[226] Jackson determined to veto it. Many moderate Democrats, including McLane, were appalled by the perceived arrogance of the bill and supported his decision. When Van Buren met Jackson on July 4, Jackson declared, "The Bank, Mr. Van Buren, is trying to kill me. But I will kill it."[233] Jackson vetoed the bill on July 10. The veto message was crafted primarily by Taney, Kendall, and Jackson's nephew and advisor Andrew Jackson Donelson. It attacked the Bank as an agent of inequality that supported only the wealthy.[234] The veto was considered "one of the strongest and most controversial" presidential statements[235] and "a brilliant political manifesto."[236] The National Republican Party immediately made Jackson's veto of the Bank a political issue.[224] Jackson's political opponents castigated the veto as "the very slang of the leveller and demagogue," claiming Jackson was using class warfare to gain support from the common man.[226]
At Biddle's direction, the Bank poured thousands of dollars into a campaign to defeat Jackson, seemingly confirming Jackson's view that it interfered in the political process.[237] Jackson successfully portrayed his veto as a defense of the common man against governmental tyranny. Clay proved to be no match for Jackson's ability to resonate with the people and the Democratic Party's strong political networks. Democratic newspapers, parades, barbecues, and rallies increased Jackson's popularity.[238] Jackson himself made numerous public appearances on his return trip from Tennessee to Washington, D.C. He won the election by a landslide, receiving 54 percent of the popular vote and 219 electoral votes. Clay received 37 percent of the popular vote and 49 electoral votes. Wirt received only eight percent of the popular vote and seven electoral votes while the Anti-Masonic Party eventually declined.[239] Jackson believed the solid victory was a popular mandate for his veto of the Bank's recharter and his continued warfare on the Bank's control over the national economy.[240]
Removal of deposits and censure
In 1833, Jackson attempted to begin removing federal deposits from the bank, whose money-lending functions were taken over by the legions of local and state banks that materialized across America, thus drastically increasing credit and speculation.[241] Jackson's moves were greatly controversial. He removed McLane from the Treasury Department, having him serve instead as Secretary of State, replacing Edward Livingston. He replaced McLane with William J. Duane.[242] In September, he fired Duane for refusing to remove the deposits. Signalling his intent to continue battling the Bank, he replaced Duane with Taney.[243] Under Taney, the deposits began to be removed.[241] They were placed in a variety of state banks which were friendly to the administration's policies, known to critics as pet banks.[244] Biddle responded by stockpiling the Bank's reserves and contracting credit, thus causing interest rates to rise and bringing about a financial panic. The moves were intended to force Jackson into a compromise. "Nothing but the evidence of suffering abroad will produce any effect in Congress," he wrote. At first, Biddle's strategy was successful, putting enormous pressure on Jackson.[245] But Jackson handled the situation well. When people came to him complaining, he referred them to Biddle, saying that he was the man who had "all the money."[246] Jackson's approach worked. Biddle's strategy backfired, increasing anti-Bank sentiment.[247][248]
In 1834, those who disagreed with Jackson's expansion of executive power united and formed the Whig Party, calling Jackson "King Andrew I," and named their party after the English Whigs who opposed seventeenth century British monarchy.[249] A movement emerged among Whigs in the Senate to censure Jackson. The censure was a political maneuver spearheaded by Clay, which served only to perpetuate the animosity between him and Jackson.[250] Jackson called Clay "reckless and as full of fury as a drunken man in a brothel."[251] On March 28, the Senate voted to censure Jackson 26–20.[252] It also rejected Taney as Treasury Secretary.[253] The House however, led by Ways and Means Committee chairman James K. Polk, declared on April 4 that the Bank "ought not to be rechartered" and that the depositions "ought not to be restored." It voted to continue allowing pet banks to be places of deposit and voted even more overwhelmingly to investigate whether the Bank had deliberately instigated the panic. Jackson called the passage of these resolutions a "glorious triumph." It essentially sealed the Bank's demise.[254] The Democrats later suffered a temporary setback. Polk ran for Speaker of the House to replace Andrew Stevenson. After Southerners discovered his connection to Van Buren, he was defeated by fellow-Tennessean John Bell, a Democrat-turned-Whig who opposed Jackson's removal policy.[255]
Payment of US national debt
The national economy following the withdrawal of the remaining funds from the Bank was booming and the federal government through duty revenues and sale of public lands was able to pay all bills. On January 1, 1835, Jackson paid off the entire national debt, the only time in U.S. history that has been accomplished.[256][257] The objective had been reached in part through Jackson's reforms aimed at eliminating the misuse of funds and through his vetoes of legislation which he deemed extravagant.[258] In December 1835, Polk defeated Bell in a rematch and was elected Speaker.[259] Finally, on January 16, 1837, when the Jacksonians had a majority in the Senate, the censure was expunged after years of effort by Jackson supporters.[250] The expunction movement was led, ironically, by Benton.[260]
In 1836, in response to increased land speculation, Jackson issued the Specie Circular, an executive order that required buyers of government lands to pay in "specie" (gold or silver coins). The result was high demand for specie, which many banks could not meet in exchange for their notes, contributing to the Panic of 1837.[261] The White House Van Buren biography notes, "Basically the trouble was the 19th-century cyclical economy of 'boom and bust,' which was following its regular pattern, but Jackson's financial measures contributed to the crash. His destruction of the Second Bank of the United States had removed restrictions upon the inflationary practices of some state banks; wild speculation in lands, based on easy bank credit, had swept the West. To end this speculation, Jackson in 1836 had issued a Specie Circular ..."[262]
Attack and assassination attempt
The first recorded physical attack on a U.S. president was directed at Jackson. He had ordered the dismissal of Robert B. Randolph from the navy for embezzlement. On May 6, 1833, Jackson sailed on USS Cygnet to Fredericksburg, Virginia, where he was to lay the cornerstone on a monument near the grave of Mary Ball Washington, George Washington's mother. During a stopover near Alexandria, Randolph appeared and struck the president. He fled the scene chased by several members of Jackson's party, including the writer Washington Irving. Jackson declined to press charges.[23]
On January 30, 1835, what is believed to be the first attempt to kill a sitting president of the United States occurred just outside the United States Capitol. When Jackson was leaving through the East Portico after the funeral of South Carolina Representative Warren R. Davis, Richard Lawrence, an unemployed house painter from England, aimed a pistol at Jackson, which misfired. Lawrence then pulled out a second pistol, which also misfired. Historians believe the humid weather contributed to the double misfiring.[263] Jackson, infuriated, attacked Lawrence with his cane, until others present, including Davy Crockett, fearing that the president would beat Lawrence to a pulp, intervened to restrain and disarm Lawrence.[264][265]
Lawrence offered a variety of explanations for the attempted shooting. He blamed Jackson for the loss of his job. He claimed that with the president dead, "money would be more plenty," (a reference to Jackson's struggle with the Bank of the United States) and that he "could not rise until the President fell." Finally, Lawrence told his interrogators that he was a deposed English king—specifically, Richard III, dead since 1485—and that Jackson was his clerk.[266] He was deemed insane and was institutionalized at the Government Hospital for the Insane in Washington, D.C.[267][268]
Afterwards, the pistols were tested and retested. Each time they performed perfectly. Many believed that Jackson had been protected by the same Providence that also protected their young nation. The incident became a part of Jacksonian mythos. Jackson initially suspected that a number of his political enemies might have orchestrated the attempt on his life. His suspicions were never proven.[269]
Reaction to anti-slavery tracts
During the summer of 1835, Northern abolitionists began sending anti-slavery tracts through the postal system into the South.[270] Pro-slavery Southerners demanded that the postal service ban distribution of the materials, which were deemed "incendiary," and some began to riot. Jackson wanted sectional peace, and desired to placate Southerners ahead of the 1836 election.[271] He fiercely disliked the abolitionists, whom he believed were, by instituting sectional jealousies, attempting to destroy the Union.[272] Jackson also did not want to condone open insurrection. He supported the solution of Postmaster General Amos Kendall, which gave Southern postmasters discretionary powers to either send or detain the anti-slavery tracts.[271] That December, Jackson called on Congress to prohibit the circulation through the South of "incendiary publications intended to instigate the slaves to insurrection."[273]
U.S. exploring expedition
.jpg)
Jackson initially opposed any federal exploratory scientific expeditions during his first term in office.[274] The last scientific federally funded expeditions took place from 1817 to 1823, led by Stephen H. Harriman on the Red River of the North. Jackson's predecessor, President Adams, attempted to launch a scientific oceanic exploration in 1828, but Congress was unwilling to fund the effort. When Jackson assumed office in 1829 he pocketed Adams' expedition plans. Eventually, wanting to establish his presidential legacy, similar to Jefferson and the Lewis and Clark Expedition, Jackson sponsored scientific exploration during his second term. On May 18, 1836, Jackson signed a law creating and funding the oceanic United States Exploring Expedition. Jackson put Secretary of the Navy Mahlon Dickerson in charge, to assemble suitable ships, officers, and scientific staff for the expedition; with a planned launch before Jackson's term of office expired. Dickerson proved unfit for the task, preparations stalled and the expedition was not launched until 1838, during the presidency of Van Buren.[274] One brig ship, USS Porpoise, later used in the expedition; having been commissioned by Secretary Dickerson in May 1836, circumnavigated the world and explored and mapped the Southern Ocean, confirming the existence of the continent of Antarctica.[275]
Panic of 1837
In spite of economic success following Jackson's vetoes and war against the Bank, reckless speculation in land and railroads eventually caused the Panic of 1837.[276] Contributing factors included Jackson's veto of the Second National Bank renewal charter in 1832 and subsequent transfer of federal monies to state banks in 1833 that caused western banks to relax their lending standards. Two other Jacksonian acts in 1836 contributed to the Panic of 1837: the Specie Circular, which mandated western lands only be purchased by money backed by gold and silver, and the Deposit and Distribution Act, which transferred federal monies from eastern to western state banks and in turn led to a speculation frenzy by banks. Jackson's Specie Circular, albeit designed to reduce speculation and stabilize the economy, left many investors unable to afford to pay loans in gold and silver. The same year there was a downturn in Great Britain's economy that stopped investment in the United States. As a result, the U.S. economy went into a depression, banks became insolvent, the national debt (previously paid off) increased, business failures rose, cotton prices dropped, and unemployment dramatically increased.[276] The depression that followed lasted for four years until 1841, when the economy began to rebound.[256][277]
Administration and cabinet
| The Jackson[278] Cabinet | ||
|---|---|---|
| Office | Name | Term |
| President | Andrew Jackson | 1829–1837 |
| Vice President | John C. Calhoun | 1829–1832 |
| None | 1832–1833 | |
| Martin Van Buren | 1833–1837 | |
| Secretary of State | Martin Van Buren | 1829–1831 |
| Edward Livingston | 1831–1833 | |
| Louis McLane | 1833–1834 | |
| John Forsyth | 1834–1837 | |
| Secretary of the Treasury | Samuel D. Ingham | 1829–1831 |
| Louis McLane | 1831–1833 | |
| William J. Duane | 1833 | |
| Roger B. Taney | 1833–1834 | |
| Levi Woodbury | 1834–1837 | |
| Secretary of War | John Eaton | 1829–1831 |
| Lewis Cass | 1831–1836 | |
| Attorney General | John M. Berrien | 1829–1831 |
| Roger B. Taney | 1831–1833 | |
| Benjamin Franklin Butler | 1833–1837 | |
| Postmaster General | William T. Barry | 1829–1835 |
| Amos Kendall | 1835–1837 | |
| Secretary of the Navy | John Branch | 1829–1831 |
| Levi Woodbury | 1831–1834 | |
| Mahlon Dickerson | 1834–1837 | |
Judicial appointments
Jackson appointed six justices to the Supreme Court.[279] Most were undistinguished. His first appointee, John McLean, had been nominated in Barry's place after Barry had agreed to become postmaster general.[280] McLean "turned Whig and forever schemed to win" the presidency. His next two appointees–Henry Baldwin and James Moore Wayne–disagreed with Jackson on some points but were poorly regarded even by Jackson's enemies.[174] In reward for his services, Jackson nominated Taney to the Court to fill a vacancy in January 1835, but the nomination failed to win Senate approval.[280] Chief Justice Marshall died in 1835, leaving two vacancies on the court. Jackson nominated Taney for Chief Justice and Philip P. Barbour for Associate Justice. Both were confirmed by the new Senate.[281] Taney served as Chief Justice until 1864, presiding over a court that upheld many of the precedents set by the Marshall Court.[282] He was regarded with respect over the course of his career on the bench, but his opinion in Dred Scott v. Sandford largely overshadows his other accomplishments.[283] On the last full day of his presidency, Jackson nominated John Catron, who was confirmed.[284]
States admitted to the Union
Two new states were admitted into the Union during Jackson's presidency: Arkansas (June 15, 1836)[285] and Michigan (January 26, 1837).[286] Both states increased Democratic power in Congress and helped Van Buren win the presidency in 1836. This was in keeping with the tradition that new states would support the party which had done the most to admit them.[287]
Later life and death (1837–1845)
In 1837, after serving two terms as president, Jackson was replaced by his chosen successor Martin Van Buren and retired to the Hermitage. He immediately began putting it in order as it had been poorly managed in his absence by his adopted son, Andrew Jackson Jr. Although he suffered ill health, Jackson remained highly influential in both national and state politics.[288] He was a firm advocate of the federal union of the states and rejected any talk of secession, insisting, "I will die with the Union."[289] Blamed for causing the Panic of 1837, he was unpopular in his early retirement. Jackson continued to denounce the "perfidy and treachery" of banks and urged his successor, Van Buren, to repudiate the Specie Circular as president.[288]
As a solution to the panic, he supported an Independent Treasury system, which was designed to hold the money balances of the government in the form of gold or silver and would be restricted from printing paper money so as to prevent further inflation.[290] A coalition of conservative Democrats and Whigs opposed the bill, and it was not passed until 1840. During the delay, no effective remedy had been implemented for the depression. Van Buren grew deeply unpopular. A unified Whig Party nominated popular war hero William Henry Harrison and former Jacksonian John Tyler in the 1840 presidential election. The Whigs' campaign style in many ways mimicked that of the Democrats when Jackson ran. They depicted Van Buren as an aristocrat who did not care for the concerns of ordinary Americans, while glorifying Harrison's military record and portraying him as a man of the people. Jackson campaigned heavily for Van Buren in Tennessee.[291] He favored the nomination of Polk for vice president at the 1840 Democratic National Convention over controversial incumbent Richard Mentor Johnson. No nominee was chosen, and the party chose to leave the decision up to individual state electors.[292]
Harrison won the election, and the Whigs captured majorities in both houses of Congress. "The democracy of the United States has been shamefully beaten", Jackson wrote to Van Buren, "but I trust, not conquered."[293] Harrison died only a month into his term, and was replaced by Tyler. Jackson was encouraged because Tyler had a strong independent streak and was not bound by party lines.[294] Tyler quickly incurred the wrath of the Whigs in 1841 when he vetoed two Whig-sponsored bills to establish a new national bank, bringing satisfaction to Jackson and other Democrats.[295] After the second veto, Tyler's entire cabinet, with the exception of Daniel Webster, resigned.[296]
Jackson strongly favored the annexation of Texas, a feat he had been unable to accomplish during his own presidency. While Jackson still feared that annexation would stir up anti-slavery sentiment, his belief that the British would use Texas as a base to threaten the United States overrode his other concerns.[297] He also insisted that Texas was part of the Louisiana Purchase and therefore rightfully belonged to the United States.[298] At the request of Senator Robert J. Walker of Mississippi, acting on behalf of the Tyler administration, which also supported annexation, Jackson wrote several letters to Texas president Sam Houston, urging him to wait for the Senate to approve annexation and explaining how much being a part of the United States would benefit Texas.[299] Initially prior to the 1844 election, Jackson again supported Van Buren for president and Polk for vice president. A treaty of annexation was signed by Tyler on April 12, 1844, and submitted to the Senate. When a letter from Secretary of State Calhoun to British Ambassador Richard Pakenham linking annexation to slavery was made public, anti-annexation sentiment exploded in the North and the bill failed to be ratified. Van Buren decided to write the "Hamlet letter," opposing annexation. This effectively extinguished any support that Van Buren might previously have enjoyed in the South.[300] The Whig nominee, Henry Clay, also opposed annexation, and Jackson recognized the need for the Democrats to nominate a candidate who supported it and could therefore gain the support of the South. If the plan failed, Jackson warned, Texas would not join the Union and would potentially fall victim to a Mexican invasion supported by the British.[301]
Jackson met with Polk, Robert Armstrong, and Andrew Jackson Donelson in his study. He then pointed directly at a startled Polk, telling him that, as a man from the southwest and a supporter of annexation, he would be the perfect candidate. Polk called the scheme "utterly abortive", but agreed to go along with it.[302] At the 1844 Democratic National Convention, Polk emerged as the party's nominee after Van Buren failed to win the required two-thirds majority of delegates. George M. Dallas was selected for vice president. Jackson convinced Tyler to drop his plans of running for re-election as an independent by promising, as Tyler requested, to welcome the President and his allies back into the Democratic Party and by instructing Blair to stop criticizing the President.[303] Polk won the election, defeating Clay.[297] A bill of annexation was passed by Congress in February and signed by Tyler on March 1.[304]
Jackson's age and illness eventually overcame him. On June 8, 1845, he was surrounded by family and friends at his deathbed. Jackson, startled by their sobbing, said, "What is the matter with my dear children? Have I alarmed you? Oh, do not cry. Be good children and we will all meet in Heaven."[305] He died immediately after at the age of 78 of chronic dropsy and heart failure.[306][305] According to a newspaper account from the Boon Lick Times, "[he] fainted whilst being removed from his chair to the bed ... but he subsequently revived ... Gen. Jackson died at the Hermitage at 6 p.m. on Sunday the 8th instant. ... When the messenger finally came, the old soldier, patriot and Christian was looking out for his approach. He is gone, but his memory lives, and will continue to live."[307] In his will, Jackson left his entire estate to Andrew Jackson Jr. except for specifically enumerated items that were left to various friends and family members.[308]
Personal life
Family
Jackson had three adopted sons: Theodore, an Indian about whom little is known,[309] Andrew Jackson Jr., the son of Rachel's brother Severn Donelson, and Lyncoya, a Creek orphan adopted by Jackson after the Battle of Tallushatchee. Lyncoya died of tuberculosis on July 1, 1828, at the age of sixteen.[310]
The Jacksons also acted as guardians for eight other children. John Samuel Donelson, Daniel Smith Donelson, and Andrew Jackson Donelson were the sons of Rachel's brother Samuel Donelson, who died in 1804. Andrew Jackson Hutchings was Rachel's orphaned grand nephew. Caroline Butler, Eliza Butler, Edward Butler, and Anthony Butler were the orphaned children of Edward Butler, a family friend. They came to live with the Jacksons after the death of their father.[311]
The widower Jackson invited Rachel's niece Emily Donelson to serve as hostess at the White House. Emily was married to Andrew Jackson Donelson, who acted as Jackson's private secretary and in 1856 ran for vice president on the American Party ticket. The relationship between the president and Emily became strained during the Petticoat affair, and the two became estranged for over a year. They eventually reconciled and she resumed her duties as White House hostess. Sarah Yorke Jackson, the wife of Andrew Jackson Jr., became co-hostess of the White House in 1834. It was the only time in history when two women simultaneously acted as unofficial First Lady. Sarah took over all hostess duties after Emily died from tuberculosis in 1836. Jackson used Rip Raps as a retreat.[312]
Temperament
Jackson's quick temper was notorious. Biographer H. W. Brands notes that his opponents were terrified of his temper: "Observers likened him to a volcano, and only the most intrepid or recklessly curious cared to see it erupt. ... His close associates all had stories of his blood-curdling oaths, his summoning of the Almighty to loose His wrath upon some miscreant, typically followed by his own vow to hang the villain or blow him to perdition. Given his record—in duels, brawls, mutiny trials, and summary hearings—listeners had to take his vows seriously."[313]
On the last day of his presidency, Jackson admitted that he had but two regrets, that he "had been unable to shoot Henry Clay or to hang John C. Calhoun."[314] On his deathbed, he was once again quoted as regretting that he had not hanged Calhoun for treason. "My country would have sustained me in the act, and his fate would have been a warning to traitors in all time to come," he said.[315] Remini expresses the opinion that Jackson was typically in control of his temper, and that he used his anger, along with his fearsome reputation, as a tool to get what he wanted.[316]
Physical appearance
Jackson was a lean figure, standing at 6 feet 1 inch (1.85 m) tall, and weighing between 130 and 140 pounds (59 and 64 kg) on average. Jackson also had an unruly shock of red hair, which had completely grayed by the time he became president at age 61. He had penetrating deep blue eyes. Jackson was one of the more sickly presidents, suffering from chronic headaches, abdominal pains, and a hacking cough. Much of his trouble was caused by a musket ball in his lung that was never removed, that often brought up blood and sometimes made his whole body shake.[116]
Religious faith
In 1838, Jackson became an official member of the First Presbyterian Church in Nashville.[317] Both his mother and his wife had been devout Presbyterians all their lives, but Jackson himself had postponed officially entering the church in order to avoid accusations that he had joined only for political reasons.[318]
Freemasonry
Jackson was a Freemason, initiated at Harmony Lodge No. 1 in Tennessee. He was elected Grand Master of the Grand Lodge of Tennessee in 1822 and 1823.[319] During the 1832 presidential election, Jackson faced opposition from the Anti-Masonic Party. He was the only U.S. president to have served as Grand Master of a state's Grand Lodge until Harry S. Truman in 1945. His Masonic apron is on display in the Tennessee State Museum. An obelisk and bronze Masonic plaque decorate his tomb at the Hermitage.[320][321][322]
Legacy
Historical reputation
Jackson remains one of the most studied and controversial figures in American history. Historian Charles Grier Sellers says, "Andrew Jackson's masterful personality was enough by itself to make him one of the most controversial figures ever to stride across the American stage." There has never been universal agreement on Jackson's legacy, for "his opponents have ever been his most bitter enemies, and his friends almost his worshippers."[323] He was always a fierce partisan, with many friends and many enemies. He has been lauded as the champion of the common man, while criticized for his treatment of Indians and for other matters.[324] James Parton was the first man after Jackson's death to write a full biography of him. Trying to sum up the contradictions in his subject, he wrote:
Jackson was criticized by his contemporary Alexis de Tocqueville in Democracy in America for flattering the dominant ideas of his time, including the mistrust over the federal power, for sometimes enforcing his view by force and disrespect towards the institutions and the law:
In the 20th century, Jackson was the subject of multiple biographies. Arthur M. Schlesinger Jr.'s Age of Jackson (1945) depicts Jackson as a man of the people battling inequality and upper-class tyranny.[326] From the 1970s to the 1980s, Robert Remini published a three-volume biography of Jackson followed by an abridged one-volume study. Remini paints a generally favorable portrait of Jackson.[327] He contends that Jacksonian democracy "stretches the concept of democracy about as far as it can go and still remain workable. ... As such it has inspired much of the dynamic and dramatic events of the nineteenth and twentieth centuries in American history—Populism, Progressivism, the New and Fair Deals, and the programs of the New Frontier and Great Society."[328] To Remini, Jackson serves as "the embodiment of the new American ... This new man was no longer British. He no longer wore the queue and silk pants. He wore trousers, and he had stopped speaking with a British accent."[327] Other 20th-century writers such as Richard Hofstadter and Bray Hammond depict Jackson as an advocate of the sort of laissez-faire capitalism that benefits the rich and oppresses the poor.[326]
Jackson's policies against Native American people have been widely considered genocide.[329] Starting around 1970, Jackson came under attack from some historians on this issue. Howard Zinn called him "the most aggressive enemy of the Indians in early American history" and "exterminator of Indians."[330][331]
Jackson has long been honored, along with Thomas Jefferson, in the Jefferson–Jackson Day fundraising dinners held by state Democratic Party organizations to honor the two men whom the party regards as its founders. However, because both Jefferson and Jackson were slave owners, as well as because of Jackson's Indian removal policies, many state party organizations have renamed the dinners.[332][333]
Brands argues that Jackson's reputation suffered since the 1960s as his actions towards Indians and African Americans received new attention. He also claims that the Indian controversy has eclipsed Jackson's other achievements in public memory. Brands notes that he was often hailed during his lifetime as the "second George Washington" because, while Washington had fought for independence, Jackson confirmed it at New Orleans and made the United States a great power. Over time, while the Revolution has maintained a strong presence in the public conscience, memory of the War of 1812, including the Battle of New Orleans, has sharply declined. Brands argues that this is because once America had become a military power, "it was easy to think that America had been destined for this role from the beginning."[334]
Still, Jackson's performance in office compared to other presidents has generally been ranked in the top half in public opinion polling. His position in C-SPAN's poll dropped from 13th in 2009 to 18th in 2017.[335]
Portrayal on banknotes and stamps
Jackson has appeared on U.S. banknotes as far back as 1869, and extending into the 21st century. His image has appeared on the $5, $10, $20, and $10,000 note. Most recently, his image has appeared on the U.S. $20 Federal reserve note beginning in 1928.[336] In 2016, Treasury Secretary Jack Lew announced his goal that by 2020 an image of Harriet Tubman would replace Jackson's depiction on the front side of the $20 banknote, and that an image of Jackson would be placed on the reverse side, though the final decision will be made by his successors.[337]
Jackson has appeared on several postage stamps. He first appeared on an 1863 two-cent stamp, which is commonly referred to by collectors as the Black Jack due to the large portraiture of Jackson on its face printed in pitch black.[338] During the American Civil War, the Confederate government issued two Confederate postage stamps bearing Jackson's portrait, one a 2-cent red stamp and the other a 2-cent green stamp, both issued in 1863.[339]
Memorials
Numerous counties and cities are named after him, including the city of Jacksonville in Florida and North Carolina; the cities of Jackson in Louisiana, Michigan, Mississippi, Missouri, and Tennessee; the city of Andrew in Iowa; Jackson County in Florida, Illinois, Iowa, Michigan, Mississippi, Missouri, Ohio, and Oregon; and Jackson Parish in Louisiana.[340]
Memorials to Jackson include a set of four identical equestrian statues by the sculptor Clark Mills: in Lafayette Square, Washington, D.C.; in Jackson Square, New Orleans; in Nashville on the grounds of the Tennessee State Capitol; and in Jacksonville, Florida.[341] Other equestrian statues of Jackson have been erected elsewhere, as in the State Capitol grounds in Raleigh, North Carolina. That statue controversially identifies him as one of the "presidents North Carolina gave the nation," and he is featured alongside James Polk and Andrew Johnson, both U.S. presidents born in North Carolina.[342] There is a bust of Andrew Jackson in Plaza Ferdinand VII in Pensacola, Florida, where he became the first governor of the Florida Territory in 1821.[343] There is also a 1928 bronze sculpture of Andrew Jackson by Belle Kinney Scholz and Leopold Scholz in the U.S. Capitol Building as part of the National Statuary Hall Collection.[344]
Popular culture depictions
Jackson and his wife Rachel were the main subjects of a 1951 historical novel by Irving Stone, The President's Lady, which told the story of their lives up until Rachel's death. The novel was the basis for the 1953 film of the same name starring Charlton Heston as Jackson and Susan Hayward as Rachel.[345][346]
Jackson has been a supporting character in a number of historical films and television productions. Lionel Barrymore played Jackson in The Gorgeous Hussy (1936), a fictionalized biography of Peggy Eaton starring Joan Crawford.[347] The Buccaneer (1938), depicting the Battle of New Orleans, included Hugh Sothern as Jackson,[348] and was remade in 1958 with Heston again playing Jackson.[349] Basil Ruysdael played Jackson in Walt Disney's 1955 Davy Crockett TV miniseries.[350] Wesley Addy appeared as Jackson in some episodes of the 1976 PBS miniseries The Adams Chronicles.[351]
Jackson is the protagonist of the comedic historic rock musical Bloody Bloody Andrew Jackson (2008) with music and lyrics by Michael Friedman and book by Alex Timbers.[352]
See also
Notes
- ^ Vice President Calhoun resigned from office. As this was prior to the adoption of the Twenty-fifth Amendment in 1967, a vacancy in the office of vice president was not filled until the next ensuing election and inauguration.
- ^ Hugh Lawson White, President pro tempore of the Senate, was first in line in the United States presidential line of succession between December 28, 1832, and March 4, 1833.[207]
-----
| Comparing Matthew the 18th Book of the 2nd Cycle with the 18th Century | |
|---|---|
| Matthew 10 - Listen 1 And when he had called unto [him] his twelve disciples, he gave them power [against] unclean spirits, to cast them out, and to heal all manner of sickness and all manner of disease. 2 Now the names of the twelve apostles are these; The first, Simon, who is called Peter, and Andrew his brother; James [the son] of Zebedee, and John his brother; 3 Philip, and Bartholomew; Thomas, and Matthew the publican; James [the son] of Alphaeus, and Lebbaeus, whose surname was Thaddaeus; 4 Simon the Canaanite, and Judas Iscariot, who also betrayed him. 5 These twelve Jesus sent forth, and commanded them, saying, Go not into the way of the Gentiles, and into [any] city of the Samaritans enter ye not: 6 But go rather to the lost sheep of the house of Israel. 7 And as ye go, preach, saying, The kingdom of heaven is at hand. 8 Heal the sick, cleanse the lepers, raise the dead, cast out devils: freely ye have received, freely give. 9 Provide neither gold, nor silver, nor brass in your purses, 10 Nor scrip for [your] journey, neither two coats, neither shoes, nor yet staves: for the workman is worthy of his meat. 11 And into whatsoever city or town ye shall enter, enquire who in it is worthy; and there abide till ye go thence. 12 And when ye come into an house, salute it. 13 And if the house be worthy, let your peace come upon it: but if it be not worthy, let your peace return to you. 14 And whosoever shall not receive you, nor hear your words, when ye depart out of that house or city, shake off the dust of your feet. 15 Verily I say unto you, It shall be more tolerable for the land of Sodom and Gomorrha in the day of judgment, than for that city. 16 Behold, I send you forth as sheep in the midst of wolves: be ye therefore wise as serpents, and harmless as doves. 17 But beware of men: for they will deliver you up to the councils, and they will scourge you in their synagogues; 18 And ye shall be brought before governors and kings for my sake, for a testimony against them and the Gentiles. 19 But when they deliver you up, take no thought how or what ye shall speak: for it shall be given you in that same hour what ye shall speak. 20 For it is not ye that speak, but the Spirit of your Father which speaketh in you. 21 And the brother shall deliver up the brother to death, and the father the child: and the children shall rise up against [their] parents, and cause them to be put to death. 22 And ye shall be hated of all [men] for my name's sake: but he that endureth to the end shall be saved. 23 But when they persecute you in this city, flee ye into another: for verily I say unto you, Ye shall not have gone over the cities of Israel, till the Son of man be come. 24 The disciple is not above [his] master, nor the servant above his lord. 25 It is enough for the disciple that he be as his master, and the servant as his lord. If they have called the master of the house Beelzebub, how much more [shall they call] them of his household? 26 Fear them not therefore: for there is nothing covered, that shall not be revealed; and hid, that shall not be known. 27 What I tell you in darkness, [that] speak ye in light: and what ye hear in the ear, [that] preach ye upon the housetops. 28 And fear not them which kill the body, but are not able to kill the soul: but rather fear him which is able to destroy both soul and body in hell. 29 Are not two sparrows sold for a farthing? and one of them shall not fall on the ground without your Father. 30 But the very hairs of your head are all numbered. 31 Fear ye not therefore, ye are of more value than many sparrows. 32 Whosoever therefore shall confess me before men, him will I confess also before my Father which is in heaven. 33 But whosoever shall deny me before men, him will I also deny before my Father which is in heaven. 34 Think not that I am come to send peace on earth: I came not to send peace, but a sword. 35 For I am come to set a man at variance against his father, and the daughter against her mother, and the daughter in law against her mother in law. 36 And a man's foes [shall be] they of his own household. 37 He that loveth father or mother more than me is not worthy of me: and he that loveth son or daughter more than me is not worthy of me. 38 And he that taketh not his cross, and followeth after me, is not worthy of me. 39 He that findeth his life shall lose it: and he that loseth his life for my sake shall find it. 40 He that receiveth you receiveth me, and he that receiveth me receiveth him that sent me. 41 He that receiveth a prophet in the name of a prophet shall receive a prophet's reward; and he that receiveth a righteous man in the name of a righteous man shall receive a righteous man's reward. 42 And whosoever shall give to drink unto one of these little ones a cup of cold [water] only in the name of a disciple, verily I say unto you, he shall in no wise lose his reward. | |
| Comparing Matthew the 18th Book of the 2nd Cycle with the 18th Century | |
|---|---|
| Matthew 23 - Listen 1 Then spake Jesus to the multitude, and to his disciples, 2 Saying, The scribes and the Pharisees sit in Moses' seat: 3 All therefore whatsoever they bid you observe, [that] observe and do; but do not ye after their works: for they say, and do not. 4 For they bind heavy burdens and grievous to be borne, and lay [them] on men's shoulders; but they [themselves] will not move them with one of their fingers. 5 But all their works they do for to be seen of men: they make broad their phylacteries, and enlarge the borders of their garments, 6 And love the uppermost rooms at feasts, and the chief seats in the synagogues, 7 And greetings in the markets, and to be called of men, Rabbi, Rabbi. 8 But be not ye called Rabbi: for one is your Master, [even] Christ; and all ye are brethren. 9 And call no [man] your father upon the earth: for one is your Father, which is in heaven. 10 Neither be ye called masters: for one is your Master, [even] Christ. 11 But he that is greatest among you shall be your servant. 12 And whosoever shall exalt himself shall be abased; and he that shall humble himself shall be exalted. 13 But woe unto you, scribes and Pharisees, hypocrites! for ye shut up the kingdom of heaven against men: for ye neither go in [yourselves], neither suffer ye them that are entering to go in. 14 Woe unto you, scribes and Pharisees, hypocrites! for ye devour widows' houses, and for a pretence make long prayer: therefore ye shall receive the greater damnation. 15 Woe unto you, scribes and Pharisees, hypocrites! for ye compass sea and land to make one proselyte, and when he is made, ye make him twofold more the child of hell than yourselves. 16 Woe unto you, [ye] blind guides, which say, Whosoever shall swear by the temple, it is nothing; but whosoever shall swear by the gold of the temple, he is a debtor! 17 [Ye] fools and blind: for whether is greater, the gold, or the temple that sanctifieth the gold? 18 And, Whosoever shall swear by the altar, it is nothing; but whosoever sweareth by the gift that is upon it, he is guilty. 19 [Ye] fools and blind: for whether [is] greater, the gift, or the altar that sanctifieth the gift? 20 Whoso therefore shall swear by the altar, sweareth by it, and by all things thereon. 21 And whoso shall swear by the temple, sweareth by it, and by him that dwelleth therein. 22 And he that shall swear by heaven, sweareth by the throne of God, and by him that sitteth thereon. 23 Woe unto you, scribes and Pharisees, hypocrites! for ye pay tithe of mint and anise and cummin, and have omitted the weightier [matters] of the law, judgment, mercy, and faith: these ought ye to have done, and not to leave the other undone. 24 [Ye] blind guides, which strain at a gnat, and swallow a camel. 25 Woe unto you, scribes and Pharisees, hypocrites! for ye make clean the outside of the cup and of the platter, but within they are full of extortion and excess. 26 [Thou] blind Pharisee, cleanse first that [which is] within the cup and platter, that the outside of them may be clean also. 27 Woe unto you, scribes and Pharisees, hypocrites! for ye are like unto whited sepulchres, which indeed appear beautiful outward, but are within full of dead [men's] bones, and of all uncleanness. 28 Even so ye also outwardly appear righteous unto men, but within ye are full of hypocrisy and iniquity. 29 Woe unto you, scribes and Pharisees, hypocrites! because ye build the tombs of the prophets, and garnish the sepulchres of the righteous, 30 And say, If we had been in the days of our fathers, we would not have been partakers with them in the blood of the prophets. 31 Wherefore ye be witnesses unto yourselves, that ye are the children of them which killed the prophets. 32 Fill ye up then the measure of your fathers. 33 [Ye] serpents, [ye] generation of vipers, how can ye escape the damnation of hell? 34 Wherefore, behold, I send unto you prophets, and wise men, and scribes: and [some] of them ye shall kill and crucify; and [some] of them shall ye scourge in your synagogues, and persecute [them] from city to city: 35 That upon you may come all the righteous blood shed upon the earth, from the blood of righteous Abel unto the blood of Zacharias son of Barachias, whom ye slew between the temple and the altar. 36 Verily I say unto you, All these things shall come upon this generation. 37 O Jerusalem, Jerusalem, [thou] that killest the prophets, and stonest them which are sent unto thee, how often would I have gathered thy children together, even as a hen gathereth her chickens under [her] wings, and ye would not! 38 Behold, your house is left unto you desolate. 39 For I say unto you, Ye shall not see me henceforth, till ye shall say, Blessed [is] he that cometh in the name of the Lord. | |
| Comparing Matthew the 18th Book of the 2nd Cycle with the 18th Century | |
|---|---|
| Matthew 28 - Listen 1 In the end of the sabbath, as it began to dawn toward the first [day] of the week, came Mary Magdalene and the other Mary to see the sepulchre. 2 And, behold, there was a great earthquake: for the angel of the Lord descended from heaven, and came and rolled back the stone from the door, and sat upon it. 3 His countenance was like lightning, and his raiment white as snow: 4 And for fear of him the keepers did shake, and became as dead [men]. 5 And the angel answered and said unto the women, Fear not ye: for I know that ye seek Jesus, which was crucified. 6 He is not here: for he is risen, as he said. Come, see the place where the Lord lay. 7 And go quickly, and tell his disciples that he is risen from the dead; and, behold, he goeth before you into Galilee; there shall ye see him: lo, I have told you. 8 And they departed quickly from the sepulchre with fear and great joy; and did run to bring his disciples word. 9 And as they went to tell his disciples, behold, Jesus met them, saying, All hail. And they came and held him by the feet, and worshipped him. 10 Then said Jesus unto them, Be not afraid: go tell my brethren that they go into Galilee, and there shall they see me. 11 Now when they were going, behold, some of the watch came into the city, and shewed unto the chief priests all the things that were done. 12 And when they were assembled with the elders, and had taken counsel, they gave large money unto the soldiers, 13 Saying, Say ye, His disciples came by night, and stole him [away] while we slept. 14 And if this come to the governor's ears, we will persuade him, and secure you. 15 So they took the money, and did as they were taught: and this saying is commonly reported among the Jews until this day. 16 Then the eleven disciples went away into Galilee, into a mountain where Jesus had appointed them. 17 And when they saw him, they worshipped him: but some doubted. 18 And Jesus came and spake unto them, saying, All power is given unto me in heaven and in earth. 19 Go ye therefore, and teach all nations, baptizing them in the name of the Father, and of the Son, and of the Holy Ghost: 20 Teaching them to observe all things whatsoever I have commanded you: and, lo, I am with you alway, [even] unto the end of the world. Amen. | |
