Description:

Buchanan, James (1791-1868) 15th President of the United States (1857-1861). Autograph Letter Signed "James Buchanan" as U.S .Senator, one page, 10 x 8 in., Washington, Feb. 21, 1836. Both horizontal folds almost completely separated and needing repair but not affecting the beautifully-penned text or signature. In 1832 President Andrew Jackson stated that the Bank of the United States was essentially a monopoly and he vetoed its re-charter, scheduled for 1836. When the old charter expired in 1836, the Bank obtained a State Charter in Pennsylvania. In this letter, Buchanan expresses his concern to Samuel Dale about the fate of his state once the State Charter becomes official. In part: "We have all been astounded here at the progress & passage of the Bank Bill through our Senate. The President feels deeply upon the subject. Indeed several persons here who were friendly to the Bank as a United States Institution condemn it loudly as a state measure. If it was dangerous formerly to the whole country as I sincerely believe, what will be our condition in Pennsylvania where all its energies shall be concentrated upon one single state."

During the years between Jackson's veto and the expiration of the charter (1832-36), Jackson had hastened the demise of the Bank by withdrawing approximately $11 million in federal funds on deposit and distributing it to various state banks. In an effort to use these funds, the various state banks extended easy credit and issued paper money freely, which touched off western real estate land speculation and inflation. To stop this, Jackson required buyers of public lands to pay only in gold or silver. This led to a run on the banks to turn in their paper money for gold and silver. The banks did not have enough gold and silver and almost half of all banks failed and closed permanently. This was the beginning of the Panic of 1837 and a depression which lasted five years. The Bank of the United States also went bankrupt in 1841.
Estimated Value $3,000 - 4,000.

Categories: