MARTIN VAN BUREN.
Martin Van Buren, eighth President, was born December 5, 1782, at Kinderhook, N.Y., and died July 24, 1862. He became eminent as a lawyer, and his skill as a Democratic politician caused him to be known as the "Little Magician." He held a number of public offices, being State senator, United States senator, 1821-28; governor of New York, 1828-29; and secretary of State under Jackson, 1829-31, when Jackson appointed him minister to England, but his political opponents secured his defeat in the Senate. Becoming Vice-President under Jackson, he presided in the Senate from 1833 to 1837. Jackson was so pleased with Van Buren that he chose him as his successor. He was the Free Soil candidate for the presidency in 1848, and thereby brought about the defeat of Cass by Taylor.
MARTIN VAN BUREN. (1782-1862.)
One term, 1837-1841.
The administration of Van Buren was one of the most unpopular we have ever had, and through no fault of his. A great deal of the prosperity of Jackson's term was superficial. He had been despotic, as shown in his removal of the United States Bank deposits and the issue of the specie circular of 1836. Confusion ensued in business, and an era of wild speculation followed a distribution of the surplus in the treasury among the States. The credit system took the place of the cash system, banks sprang up like mushrooms, and an immense amount of irredeemable money was put in circulation.
These institutions were known as "wild-cat banks," and their method of defrauding the public was as follows: They bought several hundred thousands of cheap bills which, having cost them practically nothing, they used in offering higher prices for public lands than others could pay in gold and silver. They trusted to chance that their bills would not soon come back for redemption, but if they did so, the banks "failed" and the holders of the notes lost every dollar.
The fraud was a deliberate one, but the establishment of the national banking law since then renders a repetition of the swindle impossible.
THE PANIC OF 1837.
Van Buren was hardly inaugurated when the panic of 1837 burst upon the country. The banks were forced to suspend specie payment, many failed, and mercantile houses that had weathered other financial storms toppled over like tenpins. In two months the failures in New York and New Orleans amounted to $150,000,000. Early in May, a deputation of New York merchants and bankers called upon the President and asked him to put off the collection of duties on imported goods, to rescind the specie circular, and convene Congress in the hope of devising measures for relief. All that the President consented to do was to defer the collection of duties. Immediately the banks in New York suspended specie payments, and their example was followed by others throughout the country. The New York Legislature then authorized the suspension of specie payments for a year. This left the national government without the means of paying its own obligations (since no banks would return its deposits in specie) except by using the third installment of the surplus revenue that had been promised to the States.