| This dissertation deals purposefully with three issues: the personal characteristics of Nicholas Biddle, viewed as his descendent; possible compromises which would have led to continuation of the Second Bank (obviating the "Bank War"); and Biddle's banking ideas which formed the touchstone for central banking in the 20th century.; Research for the personal insight into Biddle included review of original, uncatalogued records at the family estate outside Philadelphia (Andalusia); other primary sources at the Library of Congress, Pennsylvania Historical Society, Pennsylvania Philosophical Society, plus numerous secondary sources responsive to the problem.; Biddle was intelligent, sophisticated and elegant, with a clear picture of the interaction between money supply, specie and inflation, exhibited as he dealt effectively with the nation's economic needs and created effective, enduring policies. His naivete in practical politics contributed to the difficulties with President Jackson, yet their dispute was not personally acrimonious---Jackson wanted a bank and gave repeated signals of how it could be constituted to serve the polis. It's shown that Jackson's monetary policies, however crude and unresponsive to the needs of the market revolution, did not cause the severe economic results of the late 1830's. When the dramatic need for national banking resurfaced with the panics of 1873, 1893 and 1907, central banking again became the issue of the day, and the Federal Reserve System contained steps along lines similar to Biddle's. Biddle led a life of theory, with detachment in an aristocrat's world: arrogant, politically insulated and blind politics. With intellect and vision but lacking practical ability he was not able to sustain a national financial institution and joined the ranks of men who dealt with money innovatively and suffered. His lack of the awe for his profession bred the hubris and impiety which led to failure of the Second Bank of the United States and its successor. Biddle appears as a visionary who was admired for implementation of ideas, without all the tools his successors possessed, yet in the end failed, unable to sustain his vision as his reach exceeded his grasp. |
