Monday, July 24, 2006

Andrew Jackson Bank Veto Message

Andrew Jackson Bank Veto Message. President Jackson issued this message on July 10, 1832. In it, he vetoed the renewal of the charter of the Second Bank of the United States. The message was actually written by George Bancroft.

The following reasons were noted for the veto:

- it was unconstitutional
- it concentrated an excessive amount of the nation's financial strength into a single institution
- it exposed the government to control by "foreign interests"
- it exercised too much control over members of the Congress
- it favored Northeastern states over Southern and Western states

Quite a bit of America's current debt is owed to "foreign interests" today. I see this is no longer a big concern.

From the site:

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....

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....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 make them a present of some millions of dollars.

Every monopoly and all exclusive privileges are granted at the expense of the public, which ought to receive a fair equivalent. The many millions which this act proposes to bestow on the stockholders of the existing bank must come directly or indirectly out of the earnings of the American people....

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