The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
The President now pushed on his hostility to the Bank, being
doubly enraged by the efforts it had made to fight its own battle
in contending against him during the campaign. He avowed his
determination to make the “experiment” of using local banks as fiscal
agents of the government. Naturally enough, the banking and commercial
world was frightened at experiments, carried on without skill or
knowledge and running athwart the financial and business interests of
the country. Up to this time, you must remember, the administration had
not pronounced for specie currency at all, but it was supposed that the
President favored a government paper bank. In his Bank veto message
he had said that a charter for a Bank which would have been free from
objection might have been obtained by coming to him beforehand. In his
first message after his reëlection he raised the question whether the
public deposits were safe in the Bank and whether the government shares
in the Bank ought not to be sold. In spite of all that had gone before
these were startling questions. A majority of the Committee of Ways
and Means found the deposits safe. The minority made some strong and
undeniable points against the Bank.
During the summer of 1833 Amos Kendall was appointed agent to see
what banks could be engaged to take the public deposits. On August
19 of that year the five government directors of the Bank made a
report showing the amount expended by the Bank in printing during the
campaign, and on September 18, 1833, the President read to his cabinet
a paper setting forth the reasons why the public deposits should be
removed from the United States Bank. The Secretary of the Treasury, Mr.
Duane, refused to give the order for removal and was dismissed. Mr.
Taney was made Secretary and he ordered that no further sums should
be deposited in the Bank by collectors or others. December 3, 1833,
he reported to Congress his reasons for doing this. On December 9,
the government directors sent in a memorial to Congress saying that
they had been shut out from a knowledge of the affairs of the Bank. On
March 28, 1834, the Senate, after having tried in vain to pass a more
specific censure, resolved that the President had “assumed upon himself
authority and power not conferred by the Constitution and the laws.”
On April 15, the President sent in a protest against this resolution,
saying that if he had been guilty of violating the Constitution he
ought to be impeached, not censured by resolution. This protest the
Senate refused to register. They could not impeach him, and the House
was far from thinking of such a thing. In fact, the question of status
of the Secretary of the Treasury is a delicate one. Some independent
responsibility is laid upon him, according to the laws of 1789 and
1800, but, as he is liable to be dismissed by the President, he
cannot have an independent responsibility. The resolution of censure
was “expunged” on January 16, 1837. In the House of Representatives,
Public-domain text, read in full here on John Shaqi.
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