From this point the question became entirely one of politics. The Bank itself was doomed. On the one side, the National Republicans united in the position that the Administration had been entirely in the wrong, and that the welfare of the country demanded a great fiscal institution of the character of the Bank. On the other side, the Democrats, deriving, indeed, a new degree of unity from the controversy on this issue, upheld the President’s every word and act. “You may continue,” said Benton to his fellow partizans in the Senate, “to be for a bank and for Jackson, but you cannot be for this Bank and Jackson.” Firmly allied with the Bank interests, the National Republicans resolved to bring all possible discomfiture upon the Administration.
The House of Representatives was controlled by the Democrats, and little could be accomplished there. But the Senate contained not only the three ablest anti-Jacksonians of the day—Clay, Webster, Calhoun—but an absolute majority of anti-Administration men; and there the attack was launched. On December 26, 1833, Clay introduced two resolutions declaring that in the removal of the deposits the President had “assumed upon himself authority and power not conferred by the Constitution and laws but in derogation of both,” and pronouncing Taney’s statement of reasons “unsatisfactory and insufficient.” After a stormy debate, both resolutions in slightly amended form were carried by substantial majorities.
Jackson was not in the habit of meekly swallowing censure, and on the 15th of April he sent to the Senate a formal protest, characterizing the action of the body as “unauthorized by the Constitution, contrary to its spirit and to several of its express provisions,” and “subversive of that distribution of the powers of government which it has ordained and established.” Aside from a general defense of his course, the chief point that the President made was that the Constitution provided a procedure in cases of this kind, namely impeachment, which alone could be properly resorted to if the legislative branch desired to bring charges against the Executive. The Senate was asked respectfully to spread the protest on its records. This, however, it refused to do. On the contrary, it voted that the right of protest could not be recognized; and it found additional satisfaction in negativing an unusual number of the President’s nominations.
Throughout the remainder of his second Administration Jackson maintained his hold upon the country and kept firm control in the lower branch of Congress. Until very near the end, the Senate, however, continued hostile. During the debate on the protest Benton served notice that he would introduce, at each succeeding session, a motion to expunge the resolution of censure. Such a motion was made in 1835, and again in 1836, without result. But at last, in January, 1837, after a debate lasting thirteen hours, the Senate adopted, by a vote of 24 to 19, a resolution meeting the Jacksonian demand.
The manuscript journal of the session of 1833-1834 was brought into the Senate, and the secretary, in obedience to the resolution, drew black lines around the resolution of censure, and wrote across the face thereof, “in strong letters,” the words: “Expunged by order of the Senate, this sixteenth day of January, in the year of our Lord 1837.” Many members withdrew rather than witness the proceeding; but a crowded gallery looked on, while Benton strengthened his supporters by providing “an ample supply of cold hams, turkeys, rounds of beef, pickles, wines, and cups of hot coffee” in a near-by committee-room. Jackson gave a dinner to the “expungers” and their wives, and placed Benton at the head of the table. That the action of the Senate was unconstitutional interested no one save the lawyers, for the Bank was dead. Jackson was vindicated, and the people were enthroned. ¹
¹ MacDonald, Jacksonian Democracy, p. 239.
The struggle thus brought to a triumphant close was one of the severest in American political history. In 1836 the Bank obtained a charter from Pennsylvania, under the name of the Bank of the United States of Pennsylvania, and all connection between it and the Federal Government ceased. The institution and the controversies centering about it left, however, a deep impress upon the financial and political history of our fifth and sixth decades. It was the bank issue, more than anything else, that consolidated the new political parties of the period. It was that issue that proved most conclusively the hold of Jackson upon public opinion. And it was the destruction of the Bank that capped the mid-century reaction against the rampant nationalism of the decade succeeding the War of 1812. The Bank itself had been well managed, sound, and of great service to the country. But it had also showed strong monopolistic tendencies, and as a powerful capitalistic organization it ran counter to the principles and prejudices which formed the very warp and woof of Jacksonian democracy.
For more than a decade after the Bank was destroyed the United States had a troubled financial history. The payment of the last dollar of the national debt in 1834 gave point to a suggestion which Clay had repeatedly offered that, as a means of avoiding an embarrassing surplus, the proceeds of the sales of public lands should be distributed according to population among the States. One bill on this subject was killed by a veto in 1832, but another was finally approved in 1836. Before distribution could be carried far, however, the country was overtaken by the panic of 1837; and never again was there a surplus to distribute. For seven years the funds of the Government continued to be kept in state banks, until, in 1840, President Van Buren prevailed upon Congress to pass a measure setting up an independent treasury system, thereby realizing the ultimate purpose of the Jacksonians to divorce the Government from banks of every sort. When the Whigs came into power in 1841, they promptly abolished the independent Treasury with a view to resurrecting the United States Bank. Tyler’s vetoes, however, frustrated their designs, and it remained for the Democrats in 1846 to revive the independent Treasury and to organize it substantially as it operates today.