United States -- History -- 1815-1861; United States -- Politics and government -- 1815-1861
The "States' rights" opposition to the Bank had been aroused more than
a decade before Jackson's message of 1829. The Bank and its branches
were the sole depositories of the funds of the Government. By refusing
to accept on deposit the bills of Commonwealth banks which did not
redeem their bills in specie on demand, the Bank could prevent the
officers of the Government from accepting such bills for dues to the
Government. The Bank used this power to force the Commonwealth banks
to specie payment. It was one of the purposes for which Congress
created the Bank. It made the Bank, however, very unpopular with the
officers and stockholders of the banks chartered by the Commonwealths.
These persons were, as a rule, men of influence in their respective
communities, and they succeeded in persuading many of the people that
the United States Bank was a centralized monopoly, and was using its
powers and privileges to oppress the institutions of the
Commonwealths.
In 1818 the legislatures of Ohio and Maryland imposed a heavy tax on
the branches of the Bank located within their respective
jurisdictions. The purpose was to drive them out. The Bank resisted
payment, and was sustained by the United States courts.
{195} [Sidenote: The case of Brown and Maryland.]
In the February term of 1819 the Supreme Court of the United States
decided the famous case of McCulloch and Maryland, declaring the act
of Congress creating the Bank constitutional, and the act of the
Maryland legislature undertaking to tax it unconstitutional. Maryland
submitted at once, but the officers of the government of Ohio forced
their way into the branch of the Bank in that State, at Chillicothe,
and took one hundred thousand dollars out of the vault, and that too
in the face of an injunction issued by the United States Circuit
Court. The directors sued the officers of the Commonwealth for
trespass, and the Commonwealth refused the use of its jails to confine
the persons arrested. At the same time the Commonwealth reduced the
tax to ten thousand dollars, and refunded ninety thousand, and finally
receded entirely from its unlawful demand.
This defeat of the "States' rights" attack, and the excellent
management of the Bank by Langdon Cheves, and then by Nicholas Biddle,
seem to have silenced the complaints against the Bank from 1823 to
1828.
[Sidenote: Democracy and Socialism.]
Public-domain text, read in full here on John Shaqi.
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