Just one year after the gaining control on the Bank of England the Rothschilds turned their attention to the Americas. In 1813 the American congress passed a bill allowing for them to set up the Central Bank of the United States. The new banks charter was a copy of the First Bank of Americas. The American's would own 20% of the bank, the other 80% would be privately owned, through the magic of fractional reserve banking, would be sold off to private investors. Just as before the owners names were kept secret.
It is however known that one third of the investors were foreign. So by 1816, the Rothschilds had backed, and had control of, the new Central bank in America.
After 12 years of the Second Bank of the USA the American people nominated Andrew Jackson, the hero of the Battle of New Orleans, to run for President. No-one gave Jackson a chance, the money changers had long ago learned to buy off politicians. However they were wrong and on 29th November 1828, when Jackson won the Presidency.
The renewal of the bank didn't come up until 1936 the last year of his presidency. During his first term Jackson routed out the many supporters of the bank, from government. He fired 2000 of governments 11,000 employees.
In 1832 the banks sent a renewal bill to congress, it was sent to Jackson, during an election years for his signature. 'Old Hickory' vetoed the bill, his response was "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... 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?...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... If (Government) would confine itself to equal protection, and, as Heaven does its rains, shower its favours alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles"
In 1933 congress was unable to override Jackson's veto. For the first time in US history Jackson took his campaign on the road his motto was ‘Jackson and No Bank' The bankers ran Henry Clay against him. Despite the fact that the bankers poured over $3 million into Clay's campaign, Jackson was re-elected in a landslide in November of 1832.
Jackson ordered his new Secretary of Treasury, Lewis McLean to start removing the government’s deposits from the Second bank and start placing them in safe banks, McLean refused to do so Jackson fired him and employed William J. Duane as Secretary of Treasury, Duane also refused so Jackson fired him, and appointed Roger B Taney to the office. Taney started to withdraw the funds starting from 1st October 1933.
The bank was not yet finished, its head Nicholas Biddle used his influence to have congress withdraw Taney’s nomination. Then in a rare show of arrogance for the Bank, Biddle threatened to cause a depression if the bank was not rechartered.
Next Biddle said he was going to make money scares, in a bid to force congress to restore the Bank. In 1834, Biddle wrote to a federal judge, “This worthy President thinks that because he has scalped Indians and imprisoned Judges, he is to have his way with the Bank. He is mistaken” Biddle said “I intended to use the money retraction power of the bank to cause a massive depression until America gave in.”
Biddle made good on his threat, the Bank sharply contracted the money supply by calling in old loans and refusing to extend new ones. A financial panic ensued followed by a depression. Biddle blamed Jackson for the crash, saying that it was caused by the withdrawal of federal funds from the bank. Unfortunately Biddle’s plan worked, unemployment sawed and bankruptcies increased. Newspaper editors blasted Jackson in editorials.
Six months after Jackson withdrew the money from the bank, congress officially censured Jackson. Jackson lashed out at the banks “You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning."
If congress could muster enough votes to override Jackson’s veto the Bank would be granted another 20 year monology or more over America’s money time enough to consolidate its already great power.
The governor of a Pennsylvania George Wolf came out supporting President Jackson and strongly criticised the bank. Furthermore Biddle had been caught in public boasting about the banks plan to crash the economy. Suddenly the tide shifted.
In April of 1834 the House of Representatives voted 134 to 82 against rechartering the bank.
This was followed by a committee to investigate whether the bank had caused the crash. When the investigative committee showed up at the doors of the Bank armed with subpoena to examine the books Biddle refused to give them up. Nor would he allow inspection of correspondence with congressmen regarding personal loans and advances he’d made to them. He also refused to testify before the committee back in Washington.
On 8th January 1835, Jackson paid of the final instalment on the national debt. Which had been necessitated by allowing the bank for being able to issue currency for government bonds rather than simply issuing treasury notes without such debt.
Jackson was the only president to pay off the national debt.
A few week later on 30th January 1835, an assassin, Richard Lawrence tried to shoot President Jackson. Both pistols misfired. Lawrence was found not guilty by reason of insanity. After his release he bragged to friends that powerful people in Europe has put him up to the task and promised to protect him if he were caught.
In 1836, when its charter ran out the Second Bank of America ceased functioning as the nation’s central bank.
Biddle was later arrested and charged with fraud. He was later acquitted by died shortly thereafter while still tied up in civil law suits.
When asked what his most important accomplishment had been Jackson replied “I killed the Bank”
The Money Masters