About two weeks ago I presented a piece entitled Temples of Mammon, the thesis of which was that political battles over the banking and credit systems are as American as Apple Pie, and the sub-thesis of which was that more historical consciousness of this would relieve at least some of the anxiety and stress on the novelty of today's situation.  The "uncharted waters" meme so prominent in the language of politicians and pundits alike needs challenging.  I put the subject to rest for awhile, having lots of other things on my plate, but today being a bit slack, I thought I might return to it again.  Does this make a series? Or would I have to present re-redux before I would be guilty of that?  I shall expect counsel on that point.

I like Dr. Seuss, and one of my favorite books was the Butter Battle Book.  I can take the alliteration one step further as I ponder the Bitter Biddle Banking Battle of the late 1820s and early 1830s.  I can't squeeze the other battler into the title, because in the original scheme of things Andrew Ain't Alliterative.

 

I think the scars on the columns of the Second Bank of the United States are products of time and soft stone.  The Battle was metaphoric mainly.  Andrew Jackson and Nicholas Biddle were men of much ego, both of them, and issues of geography and social class didn't make their encounters any easier.  Both survived the "Era of Good Feelings" and each thought the other had betrayed the true sentiments of the Democratic Party.  Here's Biddle:

    I AM NOT a Whig. I am not a Locofoco. I once belonged to a 'party now obsolete called the Democratic Party, a very good party until it was spoiled by Genl. Jackson. I am now only an American Citizen deeply concerned in the welfare [of and] very anxious about the character [of] the country.

(Thanks to the New York Public Library for putting this book online.  They scanned it, but haven't gotten around to proofreading it as yet.  The words in brackets are my best guesses at correcting errors in the optical scan.)


The controversy between Biddle and Jackson had more facets than the famous cartoon of the many-headed hydra.  Politics was involved, of course, and suspicions of political favoritism were no less on everyone's tongue then than suspicions of favoritism on the part of Geithner and Summers are now.  Biddle swore he was apolitical, but the phraseology he used was inept, to say the least.

    . , . Here am I, who have taken a fancy to this Bank & having built it up with infinite care am striving to keep it from being destroyed to the infinite wrong as I most sincerely & conscientiously believe of the whole country. To me all other considerations are insignificant -- I mean to stand by it & defend it with all the small faculties which Providence has assigned to me. I care for no party in politics or religion -- have no sympathy with [Mr.] Jackson or [Mr.] Clay or [Mr.] Wirt[h] or [Mr.] Calhoun or [Mr.] Ellmaker or [Mr.] Van Buren.  I am for the Bank & the Bank alone. [My emphasis] Well then, here comes [Mr.] Jackson who takes It Into his head to declare that the Bank had failed & that it ought to be superceded by some ricketty [sic.] machinery of his own contrivance. Mr Jackson being the President of the U.S. whose situation might make his ignorance mischeivous [sic.], we set to work to disenchant the country of their foolery & we have so well succeeded that I will venture to say that there is no man, no woman, & no child in the U.S. who does not understand that the worthy President was In a great error.

One cannot believe that Biddle could be so naive as to believe that (a) Jackson wouldn't get wind of this and (b) wouldn't wreak his vengeance.  Force a re-charter, force a veto.  And in his accompanying message, Andy Jackson used language which could be dropped into today's discourse with little or no change required.

    Is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country? The president of the bank has told us that most of the State banks exist by its forbearance. Should its influence become concentered, as it may under the operation of such an act as this, in the hands of a self-elected directory whose interests are identified with those of the foreign stockholders, will there not be cause to tremble for the purity of our elections in peace and for the independence of our country in war? Their power would be great whenever they might choose to exert it; but if this monopoly were regularly renewed every fifteen or twenty years on terms proposed by themselves, they might seldom in peace put forth their strength to influence elections or control the affairs of the nation. But if any private citizen or public functionary should interpose to curtail its powers or prevent a renewal of its privileges, it can not be doubted that he would be made to feel its influence.

    Should the stock of the bank principally pass into the hands of the subjects of a foreign country, and we should unfortunately become involved in a war with that country, what would be our condition? Of the course which would be pursued by a bank almost wholly owned by the subjects of a foreign power, and managed by those whose interests, if not affections, would run in the same direction there can be no doubt. All its operations within would be in aid of the hostile fleets and armies without. Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence, it would be more formidable and dangerous than the naval and military power of the enemy

A man of lesser hubris might have laid low, but Biddle "misunderestimated" Jackson and the appeal of his entrepreneurial populism.  Biddle reigned in credit, Jackson took his ball and went home-withdrawing the deposits from the Second Bank of the United States, and, as they say, the rest is history.  (The Senate Censured Jackson-the next Senate expunged the censure from its journal, and we're left with Jackson's cannonade censuring the Senate for censuring him).

There may be a re-redux:  There may even be a re- re- redux.  We are quite good at repeating dibs and dabs of history whether we know it or not.