The same fate attended Mr. Jefferson's vehement remonstrances against
the establishment of a branch bank of the United States at New Orleans,
an object which Mr. Gallatin considered as of the highest importance and
one which he was actively engaged in carrying into effect. Mr.
Jefferson, however, wrote to him on the 13th December, 1803, in the
strongest language against this plan: "This institution is one of the
most deadly hostility existing against the principles and form of our
Constitution.... What an obstruction could not this bank of the United
States, with all its branch banks, be in time of war? It might dictate
to us the peace we should accept, or withdraw its aids. Ought we then to
give further growth to an institution so powerful, so hostile?" And he
went on to give his own views as to the proper course for government to
follow, which was in fact very nearly the plan ultimately realized in
the form of a sub-treasury. Mr. Gallatin, however, attached no great
weight to these arguments; he wrote back on the same day: "I am
extremely anxious to see a bank at New Orleans; considering the distance
of that place, our own security and even that of the collector will be
eminently promoted, and the transmission of moneys arising both from the
impost and sales of lands in the Mississippi Territory would without it
be a very difficult and sometimes dangerous operation. Against this
there are none but political objections, and those will lose much of
their force when the little injury they can do us and the dependence in
which they are on government are duly estimated. They may vote as they
please and take their own papers, but they are formidable only as
individuals and not as bankers. Whenever they shall appear to be really
dangerous, they are completely in our power and may be crushed."
Mr. Jefferson again yielded, and Mr. Gallatin procured the passage of an
Act of Congress authorizing the establishment of a branch bank at New
Orleans. Meanwhile Governor Claiborne had undertaken to establish a bank
there by his own authority. When the news of this proceeding reached Mr.
Gallatin he was very angry, and wrote to Mr. Jefferson at once on April
12, 1804, sharply condemning Governor Claiborne for this unauthorized
act, which, he added, "will probably defeat the establishment of a
branch bank which _we_ considered of great importance to the safety of
the revenue and as a bond of union between the Atlantic and Mississippi
interests." Apparently, therefore, Mr. Gallatin believed that he had
entirely converted his chief; in reality the conversion was only one
more example of that capacity for yielding his own prejudices to the
weight of his advisers, which made Mr. Jefferson so often disappoint his
enemies and preserve the harmony of his party.
Public-domain text, read in full here on John Shaqi.
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