(EIGHTH PRESIDENT: 1837-1841.)
DOMESTIC AFFAIRS.—Crisis of 1837.—The financial storm which had been gathering through the preceding administration, now burst with terrible fury. The banks contracted their circulation. Business men could not pay their debts. Failures were every-day occurrences, and the losses in New York city alone, during March and April, exceeded $100,000,000. Property of all kinds declined in value. Eight of the States failed, wholly or in part. Even the United States government could not pay its debts. Consternation seized upon all classes. Confidence was destroyed, and trade stood still.
[Footnote: As a President, Van Buren was the subject of much partisan censure. The country was passing through a peculiar crisis, and his was a difficult position to fill with satisfaction to all. That he pleased his own party is proved from the fact of his re-nomination in 1840 against Harrison. In 1848 he became the candidate of the "free democracy," a new party advocating anti-slavery principles. After this he retired to his estate in Kinderhook, N. Y, where he died.]
[Footnote: The direct causes of this were (1) the specie circular, which was issued by Jackson in 1836, just at the close of his last term, directing that payments for public lands should be made in gold and silver. The gold and silver was soon gathered into the United States treasury. (2) The surplus public money, amounting to about $28,000,000, which was ordered by Congress to be withdrawn from the local banks and distributed among the States. The banks could not meet the demand. (3) During the season of high prices and speculation, when fortunes were easily made, there had been heavy importations of European goods, which had to be paid for in gold and silver. Thus the country was drained of its specie. (4) A terrible fire in the city of New York on the night of Dec. 16, 1835, which had burned 600 valuable stores, and property to the amount of $18,000,000.]
[Footnote: At the present time the public money is kept in the United States treasury at Washington, and in sub-treasuries. This was Van Buren's favorite idea, and only adopted by Congress at the close of his term. It was called the Sub-Treasury Bill, and was used as a great argument againbt Van Buren's re-election. It was repealed during Tyler's administration, but re-enacted under Polk.]
[Illustration: THE BIRTHPLACE OF MARTIN VAN BUREN]
Foreign Affairs.-The "Patriot War" (1837-8).—The Canadian rebellion against England, at this time, stirred the sympathies of the American people. Meetings were held, volunteers offered, and arms contributed. The President issued a proclamation refusing the protection of the United States government to any who should aid the Canadians, and sent General Scott to the frontier to preserve the peace.
[Footnote: A body of American sympathizers having taken possession of Navy Island in Niagara River, had hired a steamer, called the Caroline, to convey their provisions and war materials. On the night of December 29, 1837, a party of British troops attempted to seize this vessel at Schlosser. A desperate fight ensued; but the ship was, at last, set on fire and left to drift over the Falls. This event caused great excitement at the time.]
The Northeast Boundary between Maine and New Bruns—wick had never been settled. The people of that region threatened to take up arms to support their respective claims. For some time there was great peril of a war with England. During Tyler's administration the difficulty was adjusted by what is known as the Ashburton treaty (1842), which was negotiated between the United States and Great Britain; Daniel Webster and Lord Ashburton acting as commissioners.
POLITICAL PARTIES.—The financial difficulties caused a change in political feeling, and for the time weakened the confidence of the people in the wisdom of the democratic policy. Van Buren failed of a re-election, and General Harrison, the hero of Tippecanoe, the whig nominee, was chosen President by an immense majority.
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