Friday, May 13, 2022

The Purpose and Powers of the Senate, Part XXXX: Good Feelings, Bad Times

    What the Democratic-Republicans quite failed to consider when they set about seeking to prevent a repeat of the near-crisis that was the Election of 1800 – principally by drafting the 12th Amendment and thus reducing the likelihood of a tie between victorious candidates for President – was that their seeming monopoly on power as of the early 19th century was nowhere near the guarantee of political stability that they were inclined to imagine it was. The essence of the controversy of 1800/1801 had arguably as much to do with the relationship between Congress and the American people as it did with the mechanism by which votes in the Electoral College were cast and then counted. To be sure, by modifying the text of the Constitution so as to allow for the designation of distinct candidates for President and Vice-President, the Republicans who controlled Congress in 1803 absolutely did reduce the likelihood of future electoral stalemates of the type they had just witnessed. But the emergence, in 1800, of both Thomas Jefferson and Aaron Burr as potential claimants to the office of President was really only half the cause of the catastrophe that very nearly unfolded in 1801.

    If the newly elected House had been responsible for settling the relevant stalemate, one finds it hard to believe that anything like what happened would, in fact, have actually happened. The Republicans knew, to a man, who their candidate for President was supposed to be, and those of them who were elected to Congress in 1800 would surely have cast their votes for him in short order if actually given the chance to do so. The problem, of course, was that these incoming Republicans were not responsible for settling the stalemate. The outgoing Federalists, in fact, were tasked with selecting the victor, a charge which they seemed to seize upon with a kind of bitter, malicious enthusiasm. Eventually, after weeks of balloting, a small handful of them were convinced to allow Jefferson to take his rightful place. But while a much more damaging crisis was thus averted, and while the Republicans were thereafter spurred to make some much-needed alterations to the Constitution, that party’s membership remained too complacent to address the entirety of the problem at hand. The issue wasn’t just that, during a presidential election, a stalemate was more likely than was either practical or desirable. It was that any stalemate, however rare an occurrence, would immediately become the responsibility of the group of people least suited to settling it honestly and efficiently.

    The Republicans failed to consider this almost certainly as the result of hubris. Having “vanquished” their rivals the Federalists, they doubtless came to the conclusion that any future stalemate between candidates for the office of President that were accordingly sent to the House to be settled would result, forever after, in a Republican majority setting things to rights. In fairness, as things played out, this was a far from unlikely outcome. The Federalists did continue to field presidential candidates through 1816, thus making it possible – if not probable – that an Electoral College tie might have occurred. And in every instance between 1800 and 1824, the Republicans held the majority of seats in both houses of Congress. If any presidential vote that took place during this era resulted in some manner of stalemate, therefore, a House dominated by Republicans would indeed have been called upon to settle it. This, the Republicans doubtless would have crowed, was only right and fitting, their party having settled the partisan disputes of the recent past several times over. First after 1800 and again after 1816, they had conclusively proven that theirs was the only vision of the country and its future with which the American people truly identified. The Federalists may have continued to linger in spots, but this did not change the most essential of facts. By defeating the Federalists time and time again, the Republicans had validated the Framer’s vision of a non-partisan political culture. Because truly, what significance could partisan labels possibly hold when every statesman of note was a self-identified Democratic-Republican?

    There is, to be sure, at least one problem with this kind of thinking. Within the context of a political culture in which free speech is protected, public disagreement is encouraged, and democratic expression is the law of the land, single-party governance simply cannot last. Just as it was arguably inevitable that the self-consciously non-partisan members of the Founding Generation – who loudly professed to abhor the very concept of political factionalism – eventually became the progenitors of the so-called “First Party System” which pitted the centralizing Federalists against the more radical Democratic-Republicans, the victorious Democratic-Republicans were likewise doomed to split along ideological lines and in relatively short order give rise to the Second Party System. Political actors, for better or worse, will always group together according to shared values and objectives for the purpose of pooling their strength and making more efficient collective use of their individual resources. Just so, in a political climate in which a single party or faction holds a monopoly on power, said party will eventually attract people of so many different perspectives and belief systems – united only by their desire to achieve success in the public sphere – that it must, at some point, tear itself apart. In the event that the single dominant faction within the single dominant party is willing to use the state security apparatuses which it controls to effectively suppress all dissent, this outcome might either be prevented or staved off. But so long as genuine freedom of expression is the rule of the day, no political party or faction can govern indefinitely without meeting this fate.

    So it was, in 1824, that the Democratic-Republican Party effectively met its end. While the so-called “Era of Good Feelings” – described by most historians as taking place between 1817 and 1825 – had witnessed a widespread softening of the partisan rancor that had characterized the preceding decades, it also gave rise to a general slackening of party discipline. Policies which were originated and promoted by the Federalists – national banking, federal tariffs, and the like – were openly embraced by the governing Republicans, and President James Monroe made a particular point – though tactics like national goodwill tours in 1817 and 1819 – of allowing former Federalist to feel as though the party of Jefferson was willing to embrace them as members provided that they repudiated their former partisan allegiance. Monroe was unwilling, it bears mentioning, to go so far as to appoint many former Federalists to positions within the national government, but he nevertheless made a point of balancing the emerging factionalism within his own party by appointing the leaders of major regional and ideological divisions as members of his cabinet. John Quincy Adams (1767-1848), for example, who briefly had been a Federalist while representing Massachusetts in the Senate, was granted the position of Secretary of State. Georgia’s William H. Crawford (1772-1834), meanwhile, who had first been appointed by Monroe’s predecessor Madison, was held over as the Secretary of the Treasury, while South Carolina firebrand John C. Calhoun (1782-1850) was granted the post of Secretary of War. Each man represented different facets of the increasingly disparate Republican platform, and by including all of them in this circle of advisors Monroe sought to signal to his fellow partisans that there was room for a multitude of viewpoints within both his administration and the larger party.

    Not all of the major figures within the contemporary Democratic-Republican party were included in this scheme, however, and not every member of the same were in a position to be mollified by gestures at “national unity.” Henry Clay (1777-1852), for one, who was then serving and would serve again as the Speaker of the House, pointedly declined Monroe’s invitation to join his cabinet and remained one of the most powerful Republicans entirely outside the influence of the White House. Similarly standoffish – albeit for very different reasons – was Congressman John Randolph of Roanoke (1773-1833), a hot-tempered ideological purist who abhorred the Monroe Administration’s seeming abandonment of the Jeffersonian ideals of strict constructionism and state sovereignty and fashioned himself as the nation’s foremost defender of agrarianism and Southern supremacy. In the immediate, of course, these men could only be so threatening. So long as the economy remained strong and Monroe’s cabinet remained supportive, the Era of Good Feelings showed no signs of suddenly abating. As the 1810s began to transition into the 1820s, however, issues which had been previously laid aside amidst the wave of conviviality and conciliation that characterized the post-war era once more emerged as major flashpoints of ideological and sectional discord.

    The year 1819 alone witnessed at least two major events which strongly augured the impending collapse of the era’s non-partisan atmosphere. The first was the Panic of 1819, a nationwide financial crisis brought about by a combination of post-war European economic instability, a resulting speculatory boom in American land sales, and persistent conflict and competition between the 2nd Bank of the United States and a myriad of regional state-chartered banks. In a nutshell, the creation of the 2nd BUS in early 1816 almost immediately resulted in friction between its directors and president and the advocates and backers of the various state banks that had been created during the “free banking” era of the early 1810s. Eager to capitalize on soaring global agriculture prices – the result of several European growing seasons having been disrupted by the Napoleonic Wars (1803-1815) – American speculators wanted access to cheap credit to continue as the Western frontier was in the process of being settled and the national government took to selling public land on extremely favorable terms. As the 2nd BUS and these local interests accordingly began to negotiate the nature of their prospective relationship, the result was a series of excessively generous lending policies that vastly over-extended the former’s credit and set the stage for a major recession. Between 1817 and 1818, the 2nd BUS racked up enormous debts without also accumulating the specie – i.e. gold and/or silver – to back them, a state of affairs which nearly collapsed the national economy – and in certain regions arguably did collapse the local economy – when, in 1817, European agriculture began to recover. Prices fell, the 2nd BUS initiated a credit crunch in an effort to avoid declaring bankruptcy, and thousands of Americans lost either their investments or their property. The Bank, thanks to the “stern procedures” enacted by presidents William Jones (1760-1831) and Langdon Cheves (1776-1857), was able to return to a sound footing by 1821, but the local economies of the West and Southwest were left substantially in shambles.

    Unsurprisingly, this rapid progression of boom and bust elicited widely varying responses from different regions of the American republic and from different factions of the dominant party. While New Englanders in particular – and Northeasterners in general – spared little sympathy for what they regarded as the reckless borrowing and speculating of land developers in the West, Southerners and Southwesterners broadly came to view the restrictive credit policies of the 2nd BUS as the central cause of their woes rather than any of their own activities. Private baking interests across the country, despite having helped set the stage for the crisis by overprinting paper currency which they knew they would be incapable of honoring, also remained similarly hostile to the Bank and its directors, accusing them of being anti-republican in their desire to centrally manage the economy. And while the official policy of the Treasury Department – under the auspices of Secretary Crawford – was that a general tightening of bank credit so as to prevent future crises was almost certainly good policy, other voices within the Republican Party avidly disagreed. Andrew Jackson (1767-1845), for example, a former Congressman, former Senator, and the great victor of New Orleans, grew to detest the Bank for what he considered to be its primary role in causing the panic and destroying the livelihoods of countless Americans. Indeed, Jackson would soon enough rise to a position of prominence and power in large part based on his avowed hatred for central banking, “business interests,” and the political corruption which he believed must inevitably accompany them both.

    In that same year which saw the outbreak of a widespread financial recession – the result of which, among other things, was a splintering of the Republican Party along ideological lines – the Supreme Court of the United States handed down one of its most notable decisions, the substance of which also pivoted upon the significance of the 2nd BUS. In 1818, it seemed, the Maryland General Assembly had passed a law which applied an annual tax upon any bank operating in the Old-Line State whose circulating banknotes had not been stamped by the Maryland state treasury. While this would have applied, in theory, to any bank that was not chartered in and by the State of Maryland, the only such institution – and accordingly the intended target – was the 2nd Bank of the US. Consequently, when cashier James McCulloh (1789-1861) issued 2nd BUS notes to a Baltimore resident named George Williams, witness John James filed suit – per the enforcement clause of the relevant legislation – and the resulting case promptly found its way to the Maryland Court of Appeals. Though defended by former Congressman and prominent attorney Daniel Webster (1782-1852), the Bank was ultimately unsuccessful and the aforementioned tax upheld. Because, “The Constitution is silent on the subject of banks [,]” wrote the court, the 2nd BUS was unconstitutional and any taxation thereof perfectly valid.

    Naturally, the case was appealed to the Supreme Court of the United States, with former Adams Administration cabinet secretary John Marshall (1755-1835) presiding as Chief Justice. Marshall ultimately found the Maryland law to be null and void, the principal reason being that the power to create the 2nd BUS was indeed constitutional. Not only, he asserted, had the creation of the 1st Bank in 1791 – the result of vigorous debate and backed by the signature of a chief executive, “With as much persevering talent as any measure has ever experienced” – set the precedent for further acts within the scope of the powers of Congress, but claims to state sovereignty as being superior to that of the national government were inevitably trumped by the overriding sovereignty of the collective American people. The people had not only ratified the Constitution by their own hand, but they had also elected the legislators who in turn chartered the 2nd BUS. So long, Marshall continued, as the means were “necessary and proper” to the ends – in keeping with Article I, Section 8 of the Constitution – it was thus entirely within the power of Congress to lay and collect taxes, borrow money, regulate currency, and establish commercial relations in whatever manner that its members felt was most expedient. If a national bank was the result, it was not for the states to disagree. Indeed, according to the Supremacy Clause – which states that, “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof […] shall be the supreme Law of the Land” – the states had no choice but to acquiesce. The Maryland ruling was thus voided and the offending tax declared invalid.

    At a moment in time in which the 2nd Bank of the United States had already succeeded in making itself the subject of passionate disagreements within the governing Republican Party, the decision in McCulloch v. Maryland could not help but fan the flames. While the likes of Clay, Adams, and Crawford were all of the opinion that the late recession had shown the Bank to be a necessary instrument of national economic regulation, Jackson, Randolph, and Virginia Senator John Taylor of Caroline (1753-1824) – something of a radical among his contemporaries who maintained an ardent suspicion of banking, manufacturing, and advanced capitalism in general – all concluded that efforts to entrench centralized administration of the economy were bound to lead to tyranny and corruption. By not only affirming the constitutionality of the 2nd BUS but declaring its precedence over any state policy to the contrary, the Supreme Court served to exacerbate this divide while also reviving the old Jeffersonian maxim that the national court remained the last refuge of the Federalists. If the national government could create a species of institution that was nowhere described in the Constitution but which the states could not impede or effect in the slightest, then what, truly, were its limits? “If Congress could incorporate a bank,” Taylor accordingly observed, “It might emancipate a slave.” And in this case, what was it that the Federalist-dominated judiciary was explicitly protecting? A body of investors whose only purpose seemed to be enriching themselves and their backers, and who had just lately managed to salvage their various holdings at the expense of countless landholders whose only crime had been to take advantage of the generous credit policies offered by the same? Is this whom the Constitution was intended to serve? The membership of the contemporary Republican Party found themselves increasingly at odds as to how to answer these kinds of questions.

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