“The rich rules over the poor, and the borrower becomes the lender’s slave.” —Proverbs 22:7
Andrew Jackson Vetoes Bank Recharter,
July 5, 1832
ndrew Jackson, seventh President of the United States, engendered hatred and opposition on a scale that previous chief executives never experienced. Jackson, in fact, still faces hatred and vilification one hundred seventy-three years later. Few people admire him for forcing the Cherokee and Creek tribes to vacate their lands in Georgia, North Carolina and Alabama and move to Oklahoma, though he was applauded for those measures in his own day. He was a slave-owning southerner, like four out of his six predecessors, but he opposed nullification of federal laws by the states, angering many of his original constituents. One of his presidential actions delights libertarians today but produces horror among the government elites, then and now—he vetoed re-chartering the Second National Bank, thus removing the control of the money supply and the economy from the hands of Federal bureaucrats and powerful foreign investors. In the first week of July, 1832 he was presented with the Bank Renewal Bill.
Andrew Jackson (1767-1845), c. 1837
In 1791 Alexander Hamilton, Secretary of the Treasury, created a financial plan to pay the states’ Revolutionary War debts, mint new money to create a common currency, build a central bank to control the money and establish credit, public and private. Thomas Jefferson and James Madison led the opposition to the Central Bank and the Central government paying the states’ debts. They argued that further centralization of power by the Federal Government away from local banks and state control would primarily aggrandize northern business interests to the detriment of southern farmers, and that such a bank was unconstitutional. George Washington’s support for Hamilton’s plan proved decisive to its success.
Second Bank of the United States in Philadelphia (built 1818-1824) served as the US Custom House from 1844-1935 after the recharter veto