McGrane, ed. (New York: Houghton Mifflin, 1919), pp. 219,221.
2. Quoted by Viola, p. 86.
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THE CREATURE FROM JEKYLL ISLAND
During all this time, imperceptibly at first, but quickly growing, the public had been learning the truth. Jackson, of course, was doing everything within his power to hasten the process, but other factors also were at work, not the least of which was Biddle himself. So large was his ego that he could not keep from boasting in public about his plan to deliberately disrupt the economy. People heard these boasts and they
The Democrats wasted no time consolidating these unexpected gains. To test their strength on the issue, on April 4, 1834, they called for a vote in the House on a series of resolutions which were aimed at nullifying the censure in the Senate. In essence, the resolutions stated that the House totally approved the President's bank policy. The first resolution, passed by a vote of 134 to 82, declared that the Bank of the United States "ought not to be rechartered." The second, passed by a vote of 118 to 103, agreed that the deposits "ought not to be restored." And the third, passed by an overwhelming vote of 175 to 42, called for the establishment of a special committee of Congress to investigate whether the Bank had deliberately instigated the current economic crisis. It was an overwhelming victory for Jackson which would be culminated a few years later with the passage of a resolution in the Senate which formally rescinded the previous vote of censure.
BIDDLE DEFIES CONGRESS
When the investigating committee arrived at the Bank's doors in Philadelphia armed with a subpoena to examine the books, Biddle flatly refused. Nor would he allow inspection of correspondence with Congressmen relating to their personal loans and advances. And he steadfastly refused to testify before the committee back in Washington. For lesser mortals, such action would have resulted in citations of contempt of Congress and would have carried stiff fines or imprisonment. But not for Nicholas Biddle.
Remini explains:
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The committeemen demanded a citation for contempt, but many southern Democrats opposed this extreme action, and refused to cooperate. As Biddle bemusedly observed, it would be ironic if he went to prison "by the votes of members of Congress because I would not give up to their enemies their confidential letters." Although Biddle escaped a contempt citation, his outrageous defiance of the House only condemned him still further in the eyes of the American public.1
The Bank was still alive but had been mortally wounded. By this time, Jackson had completely paid off the national debt incurred by the War of 1812 and had even run up a surplus. In fact, he ordered the Treasury to
With these accomplishments close on the heels of his victory over the Bank, the President had earned the undying hatred of monetary scientists, both in America and abroad. It is not surprising, therefore, that on January 30, 1835, an assassination attempt was made against him. Miraculously, both pistols of the assailant misfired, and Jackson was spared by a quirk of fate. It was the first such attempt to be made against the life of a President of the United States. The would-be assassin was Richard Lawrence who either was truly insane or who
The ending to this saga holds no surprises. The Bank's charter expired in 1836 and it was restructured as a state bank by the Commonwealth of Pennsylvania. After a spree of speculation in cotton, lavish advances to the Bank's officers, and the suspension of payment in specie, Biddle was arrested and charged with fraud.
Although not convicted, he was still undergoing civil litigation when he died. Within five years, the establishment was forced to close its doors forever, and America's third experience with central banking came to a close.
1. Remini,
2. Remini,
3. Robert J. Donovan,
358 THE CREATURE FROM JEKYLL ISLAND
SOME BAD MIXED IN WITH THE GOOD
