The American Republic

"Veto Message," Andrew Jackson, 1832, p. 491

Jackson Veto Message 491 Veto Message andrew jackson July 10, 1832 It was Jefferson’s close ally and presidential successor, James Madison, who oversaw the chartering of a second Bank of the United States after the first bank’s charter expired in 1811. Madison had supported the first bank and, after the War of 1812 left inflation and a large national debt, won support for a second bank. But financial panic during the 1820s and an increasing hostility toward financial interests cut into the popularity and public prestige of this second Bank of the United States. During this era, increasing numbers of American men were given the vote; requirements that voters own some form of property were becoming increasingly uncommon. With the election of Andrew Jackson, the conflict between small landholders, particularly in the South and West, and manufacturing and financial interests (including many mechanics and artisans) in the North became increasingly pronounced. Powerful politicians supporting the American system of high tariffs and federally controlled internal improvements sought to gain an extension of the bank’s charter in 1832, and they won sufficient votes to secure legislation to that effect. But Jackson saw that bank as an undemocratic tool of monied interests—including foreigners. Presidential vetoes of legislation passed by Congress were extremely rare at this time, and almost always cited the bill’s violation of the Constitution as the reason for refusing to sign it into law. Amos Kendall, a leading adviser to Jackson, is generally credited with having taken the lead in drafting this message. Veto Message The bill “to modify and continue” the act entitled “An act to incorporate the subscribers to the Bank of the United States” was presented to me on the 4th July instant. Having considered it with the solemn regard to the principles of the Constitution which the day was calculated to inspire , and come to the conclusion that it ought not to become a law, I herewith return it to the Senate, in which it originated, with my objections. A bank of the United States is in many respects convenient for the Government and useful to the people. Entertaining this opinion, and deeply impressed with the belief that some of the powers and privileges possessed by the existing bank are unauthorized by the Constitution, subversive of the rights of the States, and dangerous to the liberties of the people, I felt it my duty at an early period of my Administration to call the attention of Congress to the practicability of organizing an institution combining all its advantages and obviating these objections. I sincerely regret that in the act before me I can perceive none of those modifications of the bank charter which are necessary , in my opinion, to make it compatible with justice , with sound policy, or with the Constitution of our country. The present corporate body, denominated the president , directors, and company of the Bank of the United States, will have existed at the time this act is intended to take effect twenty years. It enjoys an exclusive privilege of banking under the authority of the General Government, a monopoly of its favor and support, and, as a necessary consequence, almost a monopoly of the foreign and domestic exchange. The powers, privileges, and favors bestowed upon it in the original charter, by increasing the value of the stock far above its par value, operated as a gratuity of many millions to the stockholders. An apology may be found for the failure to guard against this result in the consideration that the effect of the original act of incorporation could not be certainly foreseen at the time of its passage. The act before me proposes another gratuity to the holders of the same stock, and in many cases to the same men, of at least seven millions more. This donation finds no apology in any uncertainty as to the effect of the act. On all hands it is conceded that its passage will increase at least 20 or 30 percent more the market price of the stock, subject to the payment of the annuity of $200,000 per year secured by the act, thus 492 forging a nation adding in a moment one-fourth to its par value. It is not our own citizens only who are to receive the bounty of our Government. More than eight millions of the stock of this bank are held by foreigners. By this act the American Republic proposes virtually to...