their Presidential chances reap the harvest they expected. The panic of 1837 burst upon the country all the same, and the Democratic party suffered defeat in 1840. Arkansas became a State June 15, 1836. Congress adjourned July 4, 1836.

PANIC OF 1837.-The destruction of the United States Bank, the scaling of duties under the Tariff Act of 1833, the mul tiplication of State banks and introduction of their variable and doubtful notes, made the financial situation uncertain, distressed business, and tended directly toward panic. This was precipitated by an order of the President, issued through his Secretary of Treasury (July, 1836), to the effect that the Treasury should cease to take State bank notes in payment for Public Lands, but should, in the future, take only gold and silver. From a Treasury standpoint this was justifiable, for the notes of the State banks had been piling up in the Treasury Department in great quantities. But as such a result had been invited by the destruction of the National Bank, with its uniform and stable currency, it looked as if the President were recoiling from it. His specie order speedily swamped the State banks, except the "pet” ones, which were banks designated to receive the national deposits, by creating a demand for gold and silver they could not meet. The panic broke on the country the next year, and the direst distress prevailed in every department of business.

ELECTION OF 1836.-This contest opened early by the nomination (1834-35) of H. L. White, Tenn., by the Legislature of Alabama. This was to head off Jackson, who sought the nomination of Van Buren. The White faction was the rest, residue and remainder of the old Crawford faction, members of the extreme school of rigid interpreters, strict State-rights men, former nullifiers, unyielding opponents of Jackson. But the Van Buren forces were not to be demoralized in this way. The era of caucus and legislative nomination had passed. A popular convention met in Baltimore in May, 1835, and placed Martin Van Buren, N. Y., in nomination for President, with Richard M. Johnson, Ky., for Vice-President. This was called a “LocoFoco" convention, the term having come into popular use the previous winter in New York as a set-off to the term "Whig,"

which was at the same time applied to the National Republican party. The "Loco-Focos" promulgated a platform, the important plank in which was adherence to gold and silver as the only proper circulating medium.

The Whigs, Anti-Masons, "and all opposed to " Van Buren, united on William Henry Harrison, Ohio, for President, and Francis Granger, N. Y., for Vice-President, who had been the declared nominees of a State convention held in Pennsylvania (1835).

To the Alabama nomination of H. L. White for President had been added that of John Tyler, Va., for Vice-President.

Feeling that the election could be thrown into the House, where the Democratic division would insure the choice of an opposition candidate, Ohio placed John McLean in nomination for the Presidency, and Massachusetts, Daniel Webster.

Thus shaped, the election took place in November, 1836, and resulted in a majority of Van Buren electors.

TWENTY-FOURTH CONGRESS-Second Session.-Met Dec. 5, 1836. This session was not notable for bills passed, but is memorable for the attempt made by the Southern members to recover the territory west of the Sabine (Texas), which had been lost at the time of the Florida purchase (1819). Contrary to the advice contained in the President's message, against interference between Mexico and the Republic of Texas (Texas had seceded from the Mexican Republic and set up for herself), the Senate passed a bill recognizing Texan independence, which the House rejected.

A NEW POLITICAL FORCE-It is further memorable as directly recognizing a new political force which had been incorporated in 1833 as the National Anti-Slavery Society, which had been working quietly and suasively by means of lectures, tracts and newspapers, and which, in its preference of a broad humanity for narrow code, had given offence to the South by technical violations of the existing regulations respecting the return of fugitives. The mob violence which had been resorted to in several Northern cities for the purpose of breaking up the sources of abolition literature having failed, and there being an

alarming increase of the same in the South, the 'President advised Congress to pass a bill construing such literature as incendiary and prohibiting its carriage by the United States mails. The times were not yet ripe for this summary method, and the bill was rejected.

THE ELECTORAL COUNT.-Michigan was admitted as a State, Jan. 26, 1837. The electoral count in February resulted in 170 for Van Buren; 73 for Harrison; 26 for White; 14 for Webster; and II for W. P. Mangum, N. C., for President; and for Vice-President, 147 for Johnson; 77 for Granger; 47 for Tyler; and 23 for William Smith, Ala. There being no choice for Vice-President, the House elected Richard M. Johnson, Ky. Congress adjourned sine die, March 3, 1837, and on March 4 Van Buren and Johnson were sworn into office.

Jackson signalized his retiracy by a farewell address, after the manner of Washington, in which he vindicated his administrative career, and congratulated the country on its peace, prosperity, and full triumph of the Democratic principles and party. His own peace of mind had been exalted by the passage of a resolution, March 16, 1837, expunging the Clay resolution censuring his conduct in the removal of the public money's from the National Bank.

XIII.

VAN BUREN'S ADMINISTRATION.

March 4, 1837-March 3, 1841.

MARTIN VAN BUREN, N. Y., President. RICHARD M. JOHNSON, KY., Vice-President.

Congresses.

TWENTY-FIFTH CONGRESS.

TWENTY-SIXTH CONGRESS.

Sessions.

1, September 4, 1837-October 16, 1837, extra session.
2, December 4, 1837-July 9, 1838.
3, December 3, 1838-March 3, 1839.

J 1, December 2, 1839–July 21, 1840.
2, December 7, 1840-March 3, 1841.

Secretary of Navy.

-Attorney-General.

.Continued.

Levi Woodbury, N. H.... 66

Joel R. Poinsett, S. C.

Mahlon Dickerson, N. J... Continued.
.Benjamin F. Butler, N. Y...

Postmaster-General.......Amos Kendall, Ky.......

66

66

THE INAUGURAL.-Van Buren's inaugural teemed with faith in his predecessor and promises to abide by his policy. It congratulated the country on its prosperity and peace, and laid down as his chart the doctrines of the Democratic party. This commitment was untimely. It made him the executor of

* Webster got the 14 votes of Massachusetts; Mangum the 11 votes of South Carolina; White 26 votes from various Southern States. For Vice-President, John Tyler got 47 and William Smith 23. The popular vote was, Van Buren, 761,549, 15 States; Harrison, 7 States; White, 2 States; Webster, I State; Mangum, I State-236,656 votes.

the wreck invited by a financial policy which would have in time carried even Jackson down. The State banks had flooded the country with a "wild-cat" currency. Values were inflated and speculation rife. The President's (Jackson's) order to take nothing but gold and silver in payment for public lands had by this time resulted in a heavy gold premium, and the impossibility of getting specie at all by the weaker banks. The folly of the law ordering the distribution of the surplus among the States was now apparent, for the surplus was in the keeping of the "pet banks," and they could not respond to the order to pay money over to the States which they had loaned out and could not promptly collect. On May 10, 1837, a general suspension of the banks took place. This stopped the treasury, for its deposits were with the banks. The panic of 1837 was on, with its crue! and unparalleled wreck of every vital business interest. TWENTY-FIFTH CONGRESS-Extra Session.-Called Sept. 4, 1837, to consider the financial situation. House organized by electing James K. Polk, Tenn., Speaker. Both branches Democratic; House by a majority of 13. The President's message defended Jackson's " Specie Circular," but recommended the Government to break off from the banks, whether State or National, and rely on an Independent Treasury System,* with an issue of Treasury notes; further, to stop paying the deposits due the States under the act then in force. The message met with violent opposition from Whigs and many Democrats. Clay, Webster, Cushing and others made it a text for the review of Democratic finance, from the beginning of the Government down. The Democratic opponents of the message switched off into a separate party, calling themselves "Conservatives." The bills enacted sustained the Administration and marked the era of a complete separation between State and National banking. They stopped the distribution of the surplus among the States, extended the time to merchants who had borrowed National

*This was really the Sub-Treasury plan proposed by the National Republicans in the 23d Congress, and then rejected by the Democrats. It was now opposed by the Whigs, who saw, since the distress was on, an opportunity to re establish a National bank, and, as they reasoned, thus lift the country out of panic.