In the mean time Henry Clay's celebrated "Compromise Bill" was adopted by the Senate. This measure offering a gradual reduction of the tariff, was accepted by both sides and quiet restored.
[Footnote: Alexander H. Stephens says: "To do this, Clay had to break from his old political friends, while he was offering up the darling system of his heart on the altar of his country. No one can deny that he was a patriot—every inch of him. When he was importuned not to take the course he did, and assured that it would lessen his chances for the Presidency, he nobly replied, 'I would rather be right than President'—a sentiment worthy to be the motto of every young patriot in our land.">[
[Illustration: BANK OF THE UNITED STATES (now the Custom House).]
Bank of the United States.—During his first term, Jackson vetoed a bill renewing the charter of the United States Bank. After his re-election by an overwhelming majority, considering his policy sustained by the people, he ordered (1833) the public money to be removed from its vaults. The bank thereupon contracted its loans, money became scarce, and people being unable to pay their debts, commercial distress ensued. Jackson's measure excited violent clamor, but he was sustained by the democratic majority in the House of Representatives.
Speculations.—When the public money, which had been withdrawn from the Bank of the United States, was deposited in the local banks, it became easy to borrow money. Speculation extended to every branch of trade but especially to western lands. New cities were laid out in the wilderness. Fabulous prices were charged for building lots, which existed only on paper. Scarcely a man could be found who had not his pet project for realizing a fortune. The bitter fruits of these hot- house schemes were gathered in Van Buren's time.
[Illustration: Andrew Jackson]
Indian Troubles. 1. broke out in the Northwest Territory (1832). The Sacs and Foxes had some time before sold their lands to the United States, but when the settlers came to take possession, the Indians refused to leave. After some skirmishes they were driven off, and their leader, the famous Black Hawk, was captured. 2. THE FLORIDA WAR (1835) with the Seminoles grew out of an attempt to remove them, in accordance with a treaty, to lands west of the Mississippi. Osceola, the chief of the Seminoles, was so defiant, that General Thompson, the government agent, put him in irons. Dissembling his wrath, Osceola consented to the treaty. But no sooner was he released than, burning with indignation, he plotted a general massacre of the whites. General Thompson was shot and scalped while sitting at dinner, under the very guns ol Fort King. The same day Major Dade, with over one hundred men, was waylaid near the Wahoo Swamp. All but four were killed, and these afterward died of their wounds.
[Footnote: Osceola, in October, 1837, visited the camp of General
Jessup, under a flag of truce. He was there seized and sent to Fort
Moultrie, where he died the following year.]
After several battles the Indians retreated to the everglades of southern Florida, in whose tangled swamps they hoped to find a safe retreat. They were, however, pursued into their hiding-places by Colonel Taylor, and beaten in a hard-fought battle (Okechobee, Dec. 25, 1837), but were not fully subdued until 1842.
FOREIGN AFFAIRS.—France.—The French government had promised to pay $5,000,000 for damages to our commerce during Napoleon's wars. This agreement not being kept, Jackson urged Congress to make reprisals on French ships. The mediation of England secured the payment of the debt by France, and thus averted the threatened war.