Great Events in the History of North and South America

by Charles A. Goodrich

In developing the administration of Mr. Van Buren, the following topics will be noticed:

Measures respecting Banks,	Difficulties in Maine,
Treasury Circular,	Border Troubles,
Continuance of Florida War,	Changes of Public opinion,
Internal Improvements,	Character of the Administration,
Public Expenses,	Election of William H. Harrison.

Measures respecting Banks, &c.—The embarrassments in trade, consequent on the discontinuance of the Bank of the United States, issued in a great and disastrous diminution of the revenue. In this state of things, the administration found it necessary to resort to large loans. The people, as was to be expected, soon began to suffer in their private enterprises, and the country throughout wore a gloomy aspect, in respect to its pecuniary affairs and general prosperity. This condition of things arose to a great height, in the year 1837, and continued for some time afterwards. "Over trading, or the unusual amount of importations, was one cause to which this unprosperous state of the country was imputed. But it was also attributed to the discontinuance of the national bank, and to the repeated attempts of the administration to destroy its influence. Several petitions, from different commercial towns and cities, with very numerous subscribers, were presented to the president, requesting an early session of congress. The president delayed, for some time, to act on the petitions; but the distress increasing, and other petitions being addressed to him, he issued a proclamation for convening the national legislature in the month of September."

In his message, the president proposed what his opponents termed the "sub-treasury scheme." He held out very little hope of relief to the people from the government. His opinion was, that the government could do little more than take care of itself—that the class or classes of the community who had suffered, could alone supply a remedy, by a more prudent and limited course of enterprise and trade. These, and similar suggestions, seemed little calculated to satisfy a large portion of the people, especially as the government had destroyed one important means of benefit and facility to the merchants, and, through them, to all the other classes of citizens.

Following the suggestions of Mr. Van Buren, congress passed an act authorizing the issue of treasury notes, to the amount of ten millions of dollars, for the immediate wants of the government. "This was no other than a loan, except in name. The notes were made negotiable, and thus became, in fact, merely paper money; with no better credit, for there was no greater capital, or certainty of payment, than there had been in the national bank. The like amount of treasury notes was authorized in 1838, and again in 1839, but a part of former issues had been redeemed."

The sub-treasury scheme, which the president had proposed in his message, did not succeed at that time. The measure was opposed not only by the adverse political party, but by his democratic friends who were concerned in banks, and it was, at that period, very unpopular. This portion of the democratic party separated from the administration, and were known as conservatives. They eventually fell into the ranks of the old opposition, or as it was (and is still) termed, "the whig party." The subject of the sub-treasury was postponed. At the opening of the session of congress, in the following December, as may be remarked in anticipation, Mr. Van Buren again pressed the measure, which now seemed to be his favorite; but, though carried in the senate, it was defeated in the house. In a spirit of perseverance, he was enabled to effect the object, through his political friends, at the next session, when, on the 4th of July, 1840, the bill received his signature.

The extra session of congress seemed to satisfy neither party. The friends of the administration viewed the causes of the depression of business and the consequent distress, to be overaction in business, arising from exclusive issues of bank paper, and other facilities for the acquirement and enlargement of credit; the contraction of a large foreign debt, investment in unproductive lands, and vast internal improvements; and they naturally wished the separation of the government from the banks, in which project they were for the present disappointed. The opponents of the administration traced the causes of the pecuniary difficulties of the country to the veto of the national bank; the removal of the deposites, with the earnest injunction of the secretary of the treasury upon the banks to enlarge their accommodations; the gold bill and the demand of gold for the foreign indemnities; the imperfect execution of the deposite law; and the treasury order of July, 1836: and they naturally desired some modification or counteraction of these measures by legislative interference. Disappointment was felt among the mass of the people, that the government had taken care of itself, while their plans must be impeded, and the labors of industry go unrewarded.

Issue of the Treasury Circular.—This was a communication from the secretary of the treasury to the several collectors and receivers of the public money, containing instructions in respect to the safe keeping of the same. The instructions were as follows: "Congress having adjourned without making any additional provisions for the security and safe keeping of the public money, it is obvious that, in the present state of the laws and of the banks, an unusual responsibility devolves upon those who collect the revenues of the general government. The president expects that exertions, corresponding to the occasion, will cheerfully be made by every officer, and that no effort will be spared to have all the laws, as well as the regulations and instructions of the treasury department, scrupulously enforced. Accuracy in your accounts, punctuality in your returns, promptness in your deposites and payments, and entire forbearance to use any part of the public funds for private purposes, will, it is hoped, characterize the whole class of collecting offices hereafter. In the present condition of things, if any departure should unfortunately occur, it will be much regretted; and, however unpleasant the task, an exemplary and severe notice of the irregularity will become necessary, in order to secure the great public interests involved in this subject. The duty on the part of public officers to abstain from the employment of the public moneys for private advantage, is so apparent, that no excuse whatever for it can be deemed admissible."

Continuance of the War in Florida.—The war in Florida continued to be prosecuted during the administration of President Van Buren. Large sums of money were expended in maintaining it. Three millions and a half of dollars had been appropriated on its account, during the years 1836 and 1837, under General Jackson; and at the extra session in October, 1837, one million and six hundred thousand dollars were appropriated; and in 1838, the expenses for supporting the war in that quarter against the Indians, amounted to as large a sum as in either of the two preceding years. "When the difficulty arose with these Indians, President Jackson supposed that it would be soon terminated. And no one, at that time, had any reason to suppose it would continue for years, and have cost the government eight or ten millions. Other measures than those of force, would probably have terminated the difficulty at an early period. It would certainly have saved many valuable lives now lost to the country, and been far more satisfactory to the friends of humanity throughout the Union."

Internal Improvements.—During Mr. Van Buren's administration, large sums were appropriated for internal improvements, although the president was generally opposed to the policy. The expenditures were, however, for purposes which the advocates of state rights, for the most part, believed to be legitimate, such as repairs on the Cumberland road and its continuance through the states of Indiana and Illinois; for light-houses, life-boats, buoys, and monuments, in behalf of the interests of navigation. In reference to these objects, there was always far more agreement among the different parties in congress, than in reference to any thing that seemed less essential to the nation's benefit.