Welcome to the MAKING OF A NATION – American history in VOA Special English.
The question of continuing the Bank of the United States became a
serious political issue in the national election of eighteen
thirty-two. The head of the bank, Nicholas Biddle, had become very
powerful. Biddle refused to recognize that the government had the right
to interfere in any way with the bank's business. The bank was
privately operated but could make loans with taxpayers' money.
President Andrew Jackson understood the power of the Bank of the United States. He opposed giving the bank a new charter.
Jackson said the Bank of the United States was dangerous to the liberty
of Americans. The bank, he said, could build up or pull down political
parties through loans to politicians. The bank, he said, would always
support those who supported the bank. He proposed to form a new
national bank, as part of the Treasury Department.
This week in our series, Stewart Spencer and Maurice Joyce continue the story of the Bank of the United States.
In the election year of eighteen thirty-two, the bank still had four
years left to continue. Its charter would not end until eighteen
thirty-six. Jackson had been urging Congress to act early, so that the
bank could -- if its charter were rejected -- close its business slowly
over several years. This would prevent serious economic problems for
Many of Jackson's advisers believed he should say nothing about the
bank until after the election. They feared he might lose the votes of
some supporters of the bank. Biddle felt that this might be the best
time to get a charter.
Henry Clay, the presidential candidate of the National Republicans,
helped Biddle to make this decision. Senator Clay, however, was not
thinking of the bank when he gave his advice. Clay needed an issue to
campaign on. Most of the people of the country approved of Jackson's
programs. Clay could not get votes by opposing successful programs.
But, he was sure that the issue of the bank could get him some votes.
The campaign for a new charter was led by the most powerful men in each
house of Congress. In the Senate, the bank's supporters included
Senator Clay and Daniel Webster. Former President John Quincy Adams --
now a congressman -- led the bank's struggle in the house.
The chief opponent to the bank was Senator Thomas Hart Benton of
Missouri. "I object to the renewal of the charter," he told the Senate,
"because the bank is too great and powerful to be permitted in a
government of free and equal laws. I also object because the bank makes
the rich richer, and the poor poorer."
In the House, Representative Augustin Clayton of Georgia proposed an
investigation of the bank. In a speech written by Senator Benton,
Clayton charged that the bank had violated its charter a number of
The bank's supporters were afraid to vote down the proposed
investigation. It would be almost the same thing as saying that the
charges were true. The investigation was approved. And a special
committee was given six weeks to study the charges against the bank.
Four members of the seven-man committee were opponents of the bank.
Three, including John Quincy Adams, were friendly. As expected,
opponents of the bank found the charges to be true. And the bank's
supporters found them all to be false.
The majority report told of easy loans made to congressmen and
newspapermen. It said a New York newspaper that had opposed the bank
began supporting it after receiving a secret fifteen-thousand-dollar
The investigation did not really change the votes of any of the congressmen. Many votes had been bought by the bank.
Attorney General Roger Taney told of one example of this. Taney opposed
the bank. And he rode to work one morning with a congressman who also
opposed it. The congressman asked Taney for help on a speech he planned
to make against the bank.
Taney was surprised later to find that this same congressman had voted
to give the bank its new charter. The congressman told Taney that the
bank had made him a loan of twenty-thousand dollars.
The Senate finally voted on the bank's new charter. The vote was
twenty-eight for and twenty against. The House voted three weeks later.
It approved the charter, one hundred seven to eighty-five.
The bill was sent to the White House. President Jackson called a
cabinet meeting. Two cabinet members, McLane and Livingston, agreed
that the bill should be vetoed. But they urged Jackson to reject the
bank charter in such a way that a compromise might be worked out later.
Attorney General Taney, however, believed that the veto should be in
the strongest possible language. He opposed any compromise that would
continue the bank beyond eighteen thirty-six. Jackson agreed with
Taney. He asked the attorney general and two White House advisers to
help him write the veto message. They worked on the message for three
On July tenth, the veto was announced. And the message explaining it
was sent to Congress. Jackson said he did not believe the bank's
charter was constitutional. He said it was true that the Supreme Court
had ruled that Congress had the right to charter a national bank. But
he said he did not agree with the high court.
And Jackson said the president -- in taking his oath of office --
swears to support the Constitution as he understands it, not as it is
understood by others. He said the president and the Congress had the
same duty as the court to decide if a bill was constitutional.
Jackson also spoke of the way the bank moved money from West to East.
He said the bank was owned by a small group of rich men, mostly in the
East. Some of the owners, he said, were foreigners. Much of the bank's
business was done in the West. The money paid by westerners for loans
went into the pockets of the eastern bankers. Jackson said this was
wrong. Then the president spoke of his firm belief in the rights of the
"It is to be regretted," he said, "that the rich and powerful bend the
acts of the government to their own purposes. Differences among men
will always exist under every just government.
"Equality of ability, or education, or of wealth cannot be produced by
human institutions. Every man has the equal right of protection under
the laws. But when these laws are used to make the rich richer, and the
powerful more powerful, then the more humble members of our society
have a right to complain of injustice."
Jackson said he could not understand how the present owners of the bank
could have any claim of special treatment from the government. He said
the government should shower its favors -- as heaven does its rain --
on the high and low alike, on the rich and the poor equally.
Henry Clay had made the bank bill the chief issue of the eighteen
thirty-two presidential election campaign. Andrew Jackson chose the
words of his veto message for the same purpose -- to win votes in the
coming election. His veto of the bank bill cost him the votes of men of
money. But it brought him the votes of the common man: the farmer, the
laborer, and industrial worker.
After his first two years as president, Andrew Jackson was not sure he
wished to serve a second term. Jackson was not sure his health would
permit him to complete a full eight years in the White House. But he
wished to be a candidate again in eighteen thirty-two to give the
people a chance to show they approved of his programs.
Jackson decided that he would campaign again for president. But if he
won, he would resign after the first or second year, and leave the job
to his vice president.
Our program was written by Frank Beardsley. The narrators were Stewart
Spencer and Maurice Joyce. Transcripts, MP3s and podcasts of our
programs are online, along with historical images, at
voaspecialenglish.com. Join us again next week for THE MAKING OF A
NATION - an American history series in VOA Special English.
This is program #60 of THE
MAKING OF A NATION