The United States of America, Part 1: 1783-1830Sparks, Edwin Erle
History
The United States of America, Part 1: 1783-1830
Sparks, Edwin Erle
United States -- History
Advocates of these national enterprises were encouraged by a clause
in the Bank bill of 1816. In order to compel the State banks to resume
specie payment and to rearrange the national finances after the war,
the Republicans had been compelled to resort to the infamous Hamiltonian
remedy of chartering a United States bank. Only financial desperation
could warrant the adoption of a suggestion which the party had rejected
five years before. Unconstitutionally scarcely had a mention in the
debates on the bill. Republican speakers and writers advocated a bank
as eagerly as they had opposed one in 1791 and 1811. Calhoun was in
favour of a new bank and Webster was opposed to it.
This second bank was chartered, like the first, for twenty years. It
had a similar plan of organisation, although with a larger capital.
It differed most in offering to the National Government, not only a
share of stock, but a "bonus," or gift, of a million and a half dollars
for the privilege of the charter. Visions of internal improvements
made possible by such a handsome gift immediately arose in the minds
of some, although suspicion was the strongest feeling in the minds of
others. The proposition was precisely along the Federalist idea of
invested interests purchasing a monopoly from the Government, and was
viewed in that light by old Republicans. It was denounced as a bribe
similar to that given Parliament by the East India Company. Such
scruples were overcome by comparing the "bonus" to the fee paid the
National Government for a patent, which gave to the holder a monopoly,
or to the free passage granted troops over toll bridges in payment for
a State charter. Undoubtedly the desire to use this money for public
improvements aided in securing the passage of the Bank bill.
These hopes assumed shape in the next session in "An act to set apart
and pledge certain funds for internal improvements," which pledged the
proceeds of the "bonus" for constructing roads and canals, and improving
the navigation of watercourses. It was passed by a close vote in each
branch of Congress, after a long debate in the House upon the powers
of the General Government. This debate showed Calhoun, the future
spokesman of State rights, in favour of extended expenditures in the
various States without constitutional restriction, and Timothy
Pickering, former member of John Adams's Cabinet, in the attitude of
denying the right of the National Government under the implied powers
to expend a dollar without the consent of the State in which the
improvement lay. Neither would he admit that the regulation of commerce
included more than waterways. It was an additional evidence of the
reversal of parties.
Public-domain text, read in full here on John Shaqi.
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