Two things needed to happen, by and large, if
Andrew Jackson’s plan to destroy the Second Bank of the United States in the
aftermath of his reelection in 1832 was going to come to pass. First, the
government would need to find a group of state banks willing to accept
custodianship of federal deposits. This, it turned out, was rather easily done.
Over the course of the spring and summer of 1833, two of the foremost anti-Bank
stalwarts in Jackson’s cabinet, Postmaster General Amos Kendall (1789-1869) and
Attorney General Roger Taney (1777-1864), managed to compile a list of over
twenty state banks they deemed suitably trustworthy. All things going to plan,
these institutions would split the governments deposits between them one they were
removed from the possession of the Second Bank, thus decentralizing access to
credit and eliminating a proven source of financial and political mischief. In
order to complete this objective, however, Jackson would also need to find a Treasury
Secretary willing to give the requisite orders. Louis McLane, who had been
serving in the post since the summer of 1831, had always been a public
supporter of the Second Bank, and unsurprisingly recoiled at the idea of
removing the federal deposits suddenly and carelessly. Congress had only just
declared that the federal government’s funds were completely secure, he
protested at the time, and it seemed likely to him that tampering with the
deposits would trigger another economic crisis. Jackson, of course, had already
made up his mind, and so he replaced McLane at the Treasury with an Irish-born
Pennsylvanian named William J. Duane (1780-1865). Duane was not as ardently
anti-Bank as Taney or Kendall but had nonetheless made clear his dislike for
the institution. He was regarded accordingly as a dependable compromise amongst
the divided members of Jackson’s cabinet.
As it turned out, Duane was not quite as
dependable as Jackson had been led to believe. On June 1st, 1833, he
was sworn in as the 11th United States Secretary of the Treasury. On
June 3rd, he met with Jackson in the White House, where he was told
of the President’s intention to remove the federal deposits. When Duane
protested that Congress needed to be consulted before such an action could be
taken by the Department of the Treasury, Jackson responded by explaining what
he felt to be the true stakes of the situation. Congress, he asserted, could
not be trusted to resist the corrupting influence of the Second Bank, and
unless action was taken in the immediate Nicolas Biddle would simply buy
himself a veto-proof majority and initiate another re-charter effort. Duane
disagreed with this assessment, in no small part because it offended his sense
of pride to be given so little latitude as the head of a government department,
and the two men argued back and forth over the course of the summer over the
propriety and the implications of each of their preferred strategies. On
September 19th, having seemingly had enough, Jackson sent Duane what
amounted to an ultimatum. Order the removal of the deposits, he declared, or
refuse; it was Duane’s prerogative, after all. Either way, an announcement
would be printed in the next day’s paper serving notice that the funds would
begin to be transferred no later than October 1st. When Duane failed
to act and the threatened announcement was indeed printed in the
administration-friendly Washington Globe, everyone involved saw clearly
what was to follow. Duane was removed from his post on September 22nd
– less than four months after being sworn in – Attorney General Taney was
tapped to be his replacement, and an order went out declaring an official shift
in federal policy. The United States would no longer utilize a national bank.
Thereafter, and in perpetuity, all federal funds would be held by state banks.
Biddle, his allies in the National
Republican Party, and the members of the Democratic Party who continued to
favor the Second Bank reacted to this seeming defeat in ways that were both
varied and variously effective. Clay and Webster, while reluctant to pursue a
joint resolution of Congress demanding the restoration of the deposits – in the
knowledge, no doubt, that Jackson would likely veto that as well – did express
support for a second re-charter bill in the event that a compromise might be
reached between Congress and the White House. John C. Calhoun, who had helped
secure passage for the original charter bill in 1816 – and who was now a
Senator representing South Carolina following his replacement as Jackson’s Vice
President by Martin Van Buren – was of like mind, though he could not manage to
strike an agreement with Webster and Clay. In contrast to these rather lukewarm
efforts, Biddle’s response to the imminent destruction of the Second Bank was
both vigorous and vindictive. Not only did his efforts to raise interest rates,
call in loans, and generally stockpile monetary resources represent sound
fiscal policy if the Second Bank was to survive long enough to successfully secure
re-charter, but they also contributed to exactly the kind of financial disaster
Jackson had feared Biddle would someday unleash. As credit contracted,
businesses failed, and people were thrown out of work, Biddle’s intention was
for those effected to identify Jackson’s war against the Second Bank as the
cause of their woes and to petition their elected representatives for some form
of relief. Writing to a business contact in Massachusetts in January of 1843,
Biddle summed up his strategy thusly: “Nothing but the evidence of suffering
abroad will produce any effect in Congress [...] I have no doubt that such
a course will ultimately lead to the restoration of the currency and the
recharter of the Bank.”
For a time, as the economy indeed began to
suffer, Biddle’s plan appeared as though it would produce the desired result.
Congress was flooded with petitions demanding the Second Bank’s re-charter,
Jackson’s advisors began to speak with concern of the economic downturn
beginning to grip states like New York and Massachusetts, and certain of
Jackson’s fellow Democrats began to decry his recent behavior as
unconstitutional and lament his clear ignorance of finance and economics. But
Jackson, as ever, was far cannier than he appeared. Pressed again and again by
delegations from hard-hit regions as to how he planned to respond to the loss
of American jobs and the destruction of American businesses, his response was
always the same. “Go to Nicholas Biddle,” he said, in this case to group
representing distressed New York merchants.
We have no money here, gentlemen.
Biddle has all the money. He has millions of specie in his vaults, at this
moment, lying idle, and yet you come to me to save you from breaking. I tell you,
gentlemen, it's all politics.
In time, after it
became clear that there was nothing more to be gained from making requests of
the President, people instead began to take his advice. Not only did they seek
out Biddle, who was either consistently absent or alarmingly unsympathetic, but
they ultimately determined to place the blame for their predicament squarely on
his shoulders. Many members of Jackson’s own Democratic Party remained unsure
as to the wisdom of removing the federal deposits without the approval of
Congress, even to the point of questioning the legality of the same. But
steadily, consistently, public opinion won out.
The last gasp of
resistance to Jackson’s war on the Second Bank came in the form of a political
gesture bearing hardly any material consequences. Jackson had won reelection in
1832, it was true, and his fellow Democrats had maintained their majority in
the House of Representatives. But the National Republicans succeeded in taking
control of the Senate by a margin of 26 to 20, at long last permitting them the
opportunity to express their displeasure through the medium of institutional
power. They couldn’t simply vote to restore the federal deposits, of course.
The Democrats in the House would never approve such a measure. And it would
have been entirely pointless for them to expect the House to send over articles
of impeachment based on Jackson’s recent actions. But they could refuse to
ratify certain of Jackson’s cabinet appointments, many of which, during the
re-shuffle that accompanied the closing act of the “Bank War,” had been made on
an ad-hoc, acting basis. And they could, for what it was worth, vote to censure
the President. What this amounts to, in practice, has never been all that
clear. Unlike impeachment or expulsion, both of which are mentioned in the
Constitution as punishments Congress may enact against such officers of the
federal government as the majority therein feels are deserving, censure is a
power that Congress had to grant itself in the absence of some form of official
condemnation more severe than a reprimand and less drastic than removal. By a
simple majority vote, either the House or the Senate may censure an individual,
thus signifying the displeasure of the relevant body towards the individual in
question and establishing the same as a matter of public record.
Jackson had most
definitely earned the displeasure of the men who came to control the Senate
majority in the aftermath of the Election of 1832. It accordingly stood to
reason, in the absence of a more effective form of rebuke, that the National
Republicans would seek to use what little power they had gained to make it
known to all concerned that Andrew Jackson had behaved in a manner they
considered to be unbecoming of the President of the United States. Jackson,
Senator Henry Clay thereby asserted, was little more than a, “Backwoods Caesar”
whose administration was tantamount to a, “Military dictatorship [.]” By
removing the federal deposits from the possession of the Second Bank of the
United States without the approval of Congress, he had dangerously overstepped
his authority as President, made a mockery of the balance of federal authority
crafted by the Framers, and threatened to transform the United States of
America in a despotic autocracy wherein the only will that warranted being expressed
was that of the Commander-in-Chief. Democrats allied to Jackson – particularly
in the House – protested by drawing attention to the fact that the President
had but recently been elected by the majority of the whole electorate of the
American republic while the Senators who sought to pass judgement upon his
behavior had been selected by the various state legislatures. Since the
President accordingly possessed a much closer relationship to the American
people than the Senate, and the American people have just reelected him by a
wide margin, it stood to reason that the actual mood of the country was very
much in Jackson’s corner. Undaunted, the National Republicans in the Senate
countered by reminding their Democratic colleagues that the President had in
fact been chosen by the majority of the members of the Electoral College rather
than by a simple majority of the popular vote. The Senate, therefore, had as
much right to claim to speak for the American people as did the President. In
the end, notwithstanding this rather petty exchange, the final tally – as
recorded on March 28th, 1834 – conformed exactly to the extant
partisan makeup of the Senate. Twenty Senators voted against censure,
twenty-six voted in favor.
And that, in
essence, was that. Jackson’s opponents had more or less reached the limit of
their formal ability to resist or oppose his conflict with the Second Bank.
Censure carried with it no more severe a penalty than having the incident
recorded in the annals of Congress. It represented something of an indignity,
to be sure, for a man like Jackson to have his name at all blackened in the
eyes of the American people. Having participated in many a duel in his younger
days over slights that were far less public, Old Hickory was not one simply to shrug
and let matters rest as they might when aspersions were cast upon his honor or
integrity. In the moment, however, the censure vote caused few ripples, if any.
The Democrats controlling the House held a vote of their own in April,
affirming by two separate resolutions that the Second Bank should not ever be
re-chartered and that the deposits should not ever be restored. The House
leadership doubtless would have preferred to formally ratify Jackson’s decision
to remove the deposits, but this was impossible without the concurrence of the
Senate. The President, for his part, was nevertheless quite pleased. Having
thus, in his estimation, sealed the Second Bank’s fate for good and all,
Jackson regarded the aforementioned resolutions as a, “Glorious triumph [.]” By
1835, with the economy having substantially recovered from Biddle’s engineered
crisis, Jackson succeeded in paying off the entirely of the national debt. In
1836, in anticipation of the expiration of its federal charter, the Second Bank
was re-established as a private corporation in the state of Pennsylvania. And
by 1837, the Democrats having taken back control of the Senate in 1834, the upper
house of Congress voted by a margin of 25 to 19 to expunge Jackson’s censure
from the record. A banquet was held shortly thereafter in celebration. Jackson
left office as President scarcely two months later.
The difference
between what Jackson did in 1832 when he vetoed the Second Bank’s re-charter
bill and what he did in 1833 when he ordered the federal deposits to be removed
– notwithstanding the protests of his supporters – was in point of fact rather
substantial. Vetoing a bill – any bill, for any reason – fell well within the
purview of the President of the United States. Custom may have expected him to
exercise this particular power only in such circumstances as the
constitutionality of the relevant legislation remained generally ambiguous, but
the law of the land demanded no such discretion. What it did demand was that
the President of the United States respect the authority and the prerogatives
of Congress in such areas as the Constitution declared the latter to be solely
responsible. Congress had not formally been allocated the power to charter a
national bank in the text of that document, it was true. But the Supreme Court
had ruled in 1819 that the Necessary and Proper Clause permitted exactly that
measure to be taken, since it served to further other responsibilities that the
Constitution did denote. When Congress approved the bill chartering the Second
Bank of the United States in 1816, therefore, and when President Madison signed
it into law, the action being undertaken accordingly represented a wholly valid
exercise of congressional authority. Congress could charter a national bank,
and in so doing could specify how and under what circumstances it would perform
its intended function.
This, indeed, is
exactly what Congress did. A group of private shareholders was incorporated,
operating procedures were set in place, administrative offices were described
and empowered, and the exact nature of the relationship between the Second Bank
and the federal government was defined and established. For the most part, as
relates to the events that followed, this was all rather pro forma. The
Second Bank, in essence, behaved like the First Bank, and was seen as no more
or less objectionable to those who rejected the very concept out of hand. Of
particular significance to the events of the Bank War, however, was the text of
Section 16. The clause in question stated – excerpted here almost in its
entirety – that,
The deposits of the money of the
United States, in places in which the said bank and branches thereof may be
established, shall be made in said bank or branches thereof, unless the
Secretary of the Treasury shall at any time otherwise order and direct; in
which case the Secretary of the Treasury shall immediately lay before Congress,
if in session; and if not, immediately after the commencement of the next
session, the reasons of such order or direction.
Evidently, when
Congress set about re-establishing a national bank in the aftermath of the War
of 1812, the Representatives and Senators responsible wished to ensure that the
federal funds deposited therein could not be tampered with on the unilateral
authority of the Executive Branch. Perhaps they feared, in light of the
controversy that had dogged the First Bank over the whole course of its
existence, that some President at some point might try to engineer its destruction.
Or perhaps they simply felt that removing the federal deposits for any reason
entailed such drastic potential consequences that it was only prudent for the
most representative branch of the national government to be included in the
process. In either case, the law was clear. The President could, on his own
authority, order the Treasury Secretary to remove the federal deposits. But the
Treasury Secretary could not, on his own authority, remove the federal deposits
without first consulting with Congress.
Naturally, President Jackson would
claim that this restriction was not a binding one. Congress, he avowed time and
time again, did not have the authority to charter a national bank. And while
the Supreme Court may have disagreed – again, see McCulloch v. Maryland
(1819) – it just so happened Jackson also believed that the Supreme Court was
likewise devoid of any authority over the other branches of the federal
government. He had said as much in his veto message in 1832 – that each of the
three branches were independently responsible for evaluating the
constitutionality of a given object – and here, in 1833, he put his words into
action. Who could argue? If neither Congress nor the Supreme Court could
legitimately countermand the President, then Jackson’s word was as good as
constitutional law. In point of fact, Congress and the Supreme Court could and
did argue, but to little practical avail. Jackson’s fellow Democrats agreed
with the leader of their party and prevented any action from being taken
against him in the House. And the American people, in 1832, expressed their own
support by re-electing Jackson and sending another Democratic majority to the
lower house of Congress. Even if Jackson had broken the law, who would punish
him? Who could? The answer to both questions, in practice, was no one. Old
Hickory had the cards; the game was his.
This isn’t to say that there wasn’t
some degree of ambiguity surrounding Jackson’s actions towards the Second Bank
even within the framework of constitutional government he himself had
described. Granting, for the moment, that Jackson was right, and that the
President could judge independently of the Legislative or Judicial branches
whether an object, action, or law was constitutional, did it therefore stand to
reason that the sitting Chief Executive could countermand the judgement of a
previous Chief Executive? President Madison, recall, had given his assent to
the bill that first established the Second Bank when it was submitted to him by
Congress in 1816. In so doing, he thus theoretically gave the stamp of
constitutionality which Jackson insisted he possessed. Did this not mean that
the entire bill was constitutional? Or were subsequent occupants of the office
of President perfectly free to countermand, modify, or rescind the orders of
their predecessors? What if the order in question contained a qualifying
protection against modification? The bill that established the Second Bank was
by its own terms set to expire no earlier than the year 1836. By putting his
name to it, didn’t President Madison thus bind the Executive Branch to these
terms in perpetuity? And if he didn’t – if Jackson could still choose to ignore
them at his leisure – why were such terms made explicit at all? If the
President of the United States was indeed free to interpret the Constitution as
he saw fit, what possible limits did his authority really have?
Though Jackson was most definitely
responsible for creating the circumstances in which disquieting question like
these might naturally arise, it bears acknowledging that he almost certainly
never intended to empower the office of President to a wholly unlimited degree.
He was, after all, a self-avowed strict constructionist whose dislike of the
Second Bank stemmed in large part from his belief that a close reading of the
Constitution simply did not grant Congress the ability to create such an
institution. From Jackson’s view, while his claim that the President was free
to evaluate the constitutionality of a given law on his own authority
represented a potentially drastic enlargement of the powers available to the
Chief Executive of the American republic, his stated purpose was to force
Congress to adhere more closely to the text of the Constitution rather than to
create opportunities for himself to do the opposite. The problem – the reason
that he met with so much resistance – is that he went about realizing his
intended objective in a completely backwards and counter-intuitive fashion. In
order to promote closer adherence to the plain text of the Constitution, he
undertook to empower the office of President to a degree that the Constitution
came nowhere close to permitting. Any reasonable observer can see quite plainly
how little sense this makes. And yet there is almost no cause to doubt that it
made perfect sense to Andrew Jackson. Why? Well, as far as he was concerned,
that’s just how Presidents did it.
Recall, for a moment, the events of
George Washington’s tenure as President as discussed in the present series.
When seeking to accomplish a particular objective and faced with a degree of
uncertainty as to his ability to achieve the same, what did Washington do? In
both of the cited cases – i.e. the passage of the Jay Treaty (1795) and the
events of the Whiskey Rebellion (1794) – he brushed aside any doubts to the
contrary, grabbed firm hold of the power he felt he needed, and didn’t look
back. Granted, in neither instance could anyone unambiguously establish that
Washington was guilty of violating the Constitution, but a precedent to that
end was seeded all the same. When President Jefferson next sought to purchase
and incorporate foreign territory into the United States of America and then
attempted to severely regulate American trade by way of placing a tremendous
amount of power at the disposal of the office of Chief Executive, there was thus
already a model in place which he could follow. He may have railed against the
notion during the years he led the Democratic-Republicans in opposition, but
once in power Jefferson seemed to change his tune fairly quickly. Ideological
convictions to the contrary be damned, he realized that the office of President
could practically achieve a great deal more than the Framers had intended, and
at times it even should. In the end, what mattered more than the strict
constitutionality of the Chief Executive’s every action was what James Madison
memorably described as, “The magnitude of the object,” and, “The candor of the
country.” If the American people accepted it, in essence, then the Constitution
could go hang.
If this was the attitude of the
party that controlled the office of President for the entire period between the
years 1801 and 1825, it should accordingly come as no surprise that Andrew
Jackson’s election brought on only more of the same. For the whole of his
public career up to the time that he entered the White House – a span of some
forty years – he had watched how successive American presidents behaved. He saw
them brush aside doubts, seize the power they felt the situation demanded they
wield, and time and again have their actions ratified by success. Why, then,
should he have behaved otherwise once in office himself? Indeed, given his military
background and the success he had enjoyed as a result of his own aggressive
style of command, why shouldn’t he have tried to push the envelope further
still? He had always been rewarded when overstepping his stated authority in
the past, and so had many of the men who occupied the office of Chief
Executive. To be President, it seemed, was to be bold, aggressive, and somewhat
cavalier as to the limits of one’s power. And so, in his own inimitable fashion,
this is precisely what Jackson did. It wasn’t that he followed the examples of Washington
and Jefferson exactly. For all that these men did to enlarge the practical
power of the Executive Branch, neither of them could be said to have
unambiguously violated the reigning constitutional order. Rather, it was that
Jackson embraced the sense of certainty that had come to characterize
presidential power in the contemporary United States. He was decisive,
confident, and forceful. He worried less about upsetting the existing balance
of federal power than simply taking what it was he wanted. He relied on the
American people to validate his actions after the fact. He behaved as though he
alone knew what was best for the American people.
Returning – at long, long, long last
– to the prognostications offered by George Clinton in the text of Cato V, the evolutionary
process which ultimately gave rise to the likes of Andrew Jackson would once
more seem to align quite neatly with the example he put forward from the
history of ancient Rome. As Julius Caesar gave way to Caligula, who led to Nero,
who paved the way for Domitian, so Washington opened the door for Jefferson,
who made possible the emergence of the likes of Andrew Jackson. From the perspective
of the first step, the last might seem wholly impossible. From Caesar, who maintained
most of the mechanisms of the Roman state as they were, recognized many of the
traditional prerogatives of the Senate, and never questioned the paramount importance
of the city of Rome itself, how could the Romans have ever allowed themselves to
make obeisance to the likes of Nero or Domitian? To the likes of men who spat
on the traditions of the Senate, dismantled the traditional bureaucracy, and made
Rome little more than an expensive bauble in their personal collections? Just
so, from the sober, judicious leadership of George Washington, how could the
American people ever bring themselves to elevate a man like Andrew Jackson to
the highest office in the land? Washington was thoughtful, restrained, and sensible.
Certainly, he expanded the definition of executive power beyond what the
Framers had likely intended, but infrequently, and in small, subtle ways. Jackson
was conversely a brash, assertive, braggart of a man whose conception of the
power at his disposal was often alarmingly expansive. How was it possible for
the American people, like the Romans before them, to alter their conception of
political leadership so completely in so short an amount of time?
The answer, by
and large, would seem to take the form of a fairly durable axiom. Over a sufficient
period of time, with reasonable inducements along the way, people can grow
accustomed to almost anything. On one hand, this is rather a comforting thing. Destructive
attitudes can successfully be eliminated, and constructive habits can
successfully be embraced. People are not doomed to a static existence. On the
other hand, however, it is a potentially terrifying prospect. Even a people renowned
for their virtue can come to accept iniquity. Time, if permitted, erodes even
the best morals. This latter dimension seems to be what Clinton was most eager
that his countrymen keep in mind. It might indeed have seemed impossible to quite
probably the majority of Americans in the late 1780s that the ratification of
the proposed constitution would someday lead to the expansion of executive
power eventually heralded by the rise of Andrew Jackson. In truth, of course,
there was every reason to fear such an outcome. The Romans, who had for
generations prided themselves on being virtuous, and prudent, and distrustful
of power, eventually came to accept the rule of supreme egotists like Nero and unrepentant
autocrats like Domitian. Why should the American people think themselves immune
from this same course of degeneration? Indeed, they were not immune. The creation
of a unitary chief executive under the auspices of the Constitution opened the
door for this same transformation to occur once more in America. What seemed
impossible became simply what was.
None of
this is to say, mind you, that Clinton – and, by extension, the Founders – were
always right whenever they held for in such a manner. Putting aside the fact
that various members of the Founding Generation were astoundingly wrong about a
great many things – not the least of which was the notion that owning human
beings is in any way acceptable – it bears noting that Clinton was not trying
to warn his fellow countrymen in the text of Cato V of what would inarguably
come to pass if they consented to ratify the proposed constitution. On the contrary,
far from being certain as to the fate that awaited them all, he was profoundly
uncertain. He did not know, any more than anyone could know, what would come to
pass in the event that the American republic adopted a more centralized form of
government. But he was an intelligent man, and he knew his history. And what he
knew made him afraid. He feared what might become of the nation he and his cohorts
had helped to create; that it might unravel or succumb to corruption. And he
wrote about these fears, tried to turn them into a warning. We might look back
on the attempt as being hopelessly naïve. What could this man have known of
what America would become? Even as long ago as the 1830s, this same sentiment
seemed to be in common circulation. Having survived for nearly fifty years
under the auspices of the Constitution, it doubtless appeared to even the most
clear-eyed statesmen of that now far-distant era that the American republic was
as robust and as durable as any nation ever created by man. Far from being in
danger of dissolution or corruption, it was a country on the rise; powerful,
vigorous, and hungry. What could such a nation possibly have to fear? Nothing, Andrews
Jackson most assuredly would have answered. The United States of America had
nothing to fear at all.
Was Clinton
wrong to be afraid, then? Were his fears wholly unfounded? No. It’s just that he
viewed the United States of America from a wholly different perspective than
anyone one else ever could. He and his colleagues stood in the midst of a
pivotal moment in the history of the world and gazed down the river of time at
all the possible futures that suddenly lay before them. There was greatness to
be had, and glory, and fame, and wealth. America might someday become the
greatest empire in the history of human civilization. But there also lay a
great darkness in the future. The American people might feel their newfound potential
too keenly and grasp it too greedily. They might sacrifice all that their
forebears had left them for more and greater power. Who could say which of
these fates would come to pass? And how much difference was there between one
and the other? The American people might proceed down one path, assured in
their choice by the prosperity that came with it, only to realize too late that
they had strayed from the course of virtue and destroyed all that they
professed to cherish. Caution would seem to be the only contraceptive: extreme
caution, prudence, and respect for the wisdom of the past. This, in essence, is
what the Founders teach and what the Founders embody. Were they always right?
Of course not. But sometimes, in some things, they knew more than anyone else could.
Anyway, that’ll
do me. Decide for yourself, by all means.