In the course of these years the population of the United States rose to seventeen million, and the number of states to twenty-six. Steam navigation began on the ocean; two thousand miles of railroad were built in the land; new inventions came into use; and the social and industrial life of the people was completely revolutionized. The national debt was paid; a surplus accumulated in the Treasury; the sale of public lands rose from three million dollars in 1831 to twenty-five million dollars in 1836; and the rage for internal improvements burned more fiercely than ever. A great financial panic spread over the country; the charter of the National Bank expired, a hundred “wild-cat banks” sprang up to take its place, and the question of the abolition of slavery became troublesome.
Early Troubles in Our System of Public Finance.—On the great questions which grew out of this condition of affairs the position of the two parties was well defined. The Democrats demanded a strict construction of the Constitution; no internal improvements at public expense; a surrender of the public lands to the state in which they lay; no tariff for protection; no National Bank; no agitation of the question of the abolition of slavery; the establishment of subtreasuries for the safe [640] keeping of the public funds, and the distribution of the surplus revenue. The Whigs demanded a recharter of the National Bank; a tariff for protection; the expenditure of the surplus on internal improvements; the distribution of the money derived from the sale of public lands; a limitation of the veto power of the President; and no removals from office for political reasons.
The Democrats, true to their principles, and having the power, carried them out. They destroyed the Bank; they defeated bill after bill for the construction of roads and canals; they distributed thirty-eight million dollars of the surplus revenue among the states, and by the cartage of immense sums of money from the East to the far distant West, hastened that inevitable financial crisis known as the “panic of 1837.”
Andrew Jackson had just been succeeded in the presidency by Martin Van Buren (1837-1841) and on him the storm burst in all its fury. But he stood it bravely, held to a strict construction of the Constitution, insisted that the panic would right itself without interference by the Government, and stoutly refused to meddle. Since the refusal of Congress to recharter the Bank of the United States, whose charter expired in 1836, the revenue of the Government had been deposited in certain “pet banks” designated by the Secretary of the Treasury. Every one of them failed in the panic of 1837. Van Buren therefore recommended “the divorce of Bank and State,” and after a struggle of three years his friends carried the “subtreasury” scheme in 1840. This law cast off all connection between the state banks and the Government, put the collectors of the revenue under heavy bonds to keep the money safely till called for by the Secretary of the Treasury, and limited payments to or by the United States to specie.
National Conventions and Rise of Slavery Issue.—The year 1840 was presidential year, and is memorable for the introduction of new political methods; for the rise of a new and vigorous party; and for the appearance of a new political issue. The new machinery consisted in the permanent introduction of the national convention for the nomination of a president, now used by the Democrats for the second time, and by the Whigs for the first; in the promulgation of a party platform by the convention, now used by the Democrats for the first time; and in the use of mass meetings, processions, songs, and all the paraphernalia of a modern campaign by the Whigs.
The new party was the Liberty Party, and the new issue the “absolute and unqualified divorce of the general Government from slavery, and the restoration of equality of rights among men.” The principles of that party were: slavery is against natural right, is strictly local, is a state institution, and derives no support from the authority of Congress, which has no power to set up or continue slavery anywhere; every treaty, every act, establishing, favoring, or continuing slavery in the District of Columbia, in the territories, on the high seas, is, therefore, unconstitutional.
The Short-lived Era of the Whigs.—The candidate of this party was James Gillespie Birney. The Democrats nominated Martin Van Buren. The Whigs put forward William Henry Harrison and elected him. Harrison died one month after his inauguration, and John Tyler, the Vice-President and a Democrat of the Calhoun wing, became President.
The Whig policy as sketched by Clay was the repeal of the Subtreasury Act; the charter of a National Bank; tariff for protection; and the distribution of the sales of public lands. To the repeal of the Subtreasury Act Tyler gladly assented. To the establishment of a bank even when called “Fiscal Corporation,” he would not assent, and, having twice vetoed such bills, was read out of the party by a formal manifesto issued by Whig congressmen.
It mattered little, however, for the question of the hour was not the bank, nor the tariff, nor the distribution of the sales of lands, but the annexation of the republic Texas. Joined to the demand for the reoccupation of Oregon, it became the chief plank in the Democratic platform of 1844. The Whig platform said not a word on the subject, and the Liberty Party, turning with loathing from the cowardice of Clay, voted again for Birney, gave the State of New York to the Democrats, and with it the presidency.
The Annexation of Texas, and Wilmot Proviso.—Accepting the result of the election as “instruction from the people,” Congress passed the needed act and Tyler in the last hours of his administration declared Texas annexed.