SPECULATION-THE GOVERNMENT EMBARRASSED.

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XLIX.

the millions of acres, and cities and villages were multi- CHAP. plied on paper by hundreds; and stranger still, the sites of these prospective cities, divided into lots, were fre- 1837. quently made the basis of money transactions.

A few months before, the General Government was free from debt, and had a surplus of forty millions. Now the surplus had been given to the States; the importers had neither gold nor silver to pay duties, and the Government itself was deprived of the means to defray its current expenses.

4.

When Congress assembled, the President made no Sept. suggestion as to the manner in which the commercial embarrassments of the country might be relieved, on the ground that the General Government was unauthorized by the Constitution to afford such relief. He was therefore in favor of the people taking care of themselves. The message contained, however, two recommendations; one the issue of Treasury notes, to relieve the Government's own embarrassments, the other an Independent Treasury for the public funds. The object of the latter was to avoid the liability of loss by depositing the public moneys in banks. These treasuries were to be located at suitable places; the sub-treasurers to be appointed by the President, and to give bonds for the proper fulfilment of their duties.

The measure was opposed, lest the withdrawal of so much gold and silver from circulation would injure commercial operations. The bill failed in the House, though it passed the Senate. Three years later it was established; the next year repealed-then re-enacted, five years after, and is still the law of the land.

The Legislatures of many of the States became imbued with the spirit of speculation, and as a means to obtain loans, issued State stocks to the amount of one hundred millions. This was done under the laudable pretext of developing their resources, by internal improvements.

XLIX.

CHAP. Eight of the States failed to pay the interest on these loans or stocks. In time they recovered from the shock, 1838. and but one of them, Mississippi, and one territory, Florida, repudiated their debt and defied their creditors. These loans were principally obtained in Europe, where, on the subject of these failures to pay, great indignation was expressed. The whole nation was dishonored ;-two years later, when the National Government wished to obtain a loan, her agents could not induce a capitalist in all Europe to risk a dollar in such investment.

As the administration of Van Buren drew to a close, the financial condition of the country did not much improve. However, his party nominated him, as well as VicePresident Johnson, for a second term. The opposing candidate was William Henry Harrison, of Ohio, whom we have seen as a popular general of the north-west during 1812. the last war, as well as filling many civil offices with honor to himself and profit to the country. On the same ticket was John Tyler of Virginia, as the candidate for 1840. Vice-President. Harrison was elected by a very large majority. The commercial disasters of the country were generally attributed to the interference of the Government with the currency; this belief had caused a great revulsion in the public mind.

CHAPTER L.

HARRISON AND TYLER'S ADMINISTRATION.

The Inauguration.-Death of Harrison.-Tyler President.-Sub-Treasury Act repealed.-Bankrupt Law.-The Bank Charters; their Vetoes.Proposition to treat with Great Britain.-Insurrection in Canada.-The Caroline.-Trial of McLeod.-Boundary Disputes in Maine.-Lord Ashburton.-Treaty of Washington.-Questions of Visit and Impressment.-Exploring Expedition.-Texas Colonization; struggles.-Independence. Siege of Goliad and the Alamo.-Davy Crocket.-Massacre of Prisoners.-Battle of San Jacinto.-Houston President.-Question of Annexation in Congress.-Texas Annexed.-Disturbances in Rhode Island.-Iowa and Florida become States.

L.

Mar. 4.

AN immense concourse of people, many of them from CHAP. distant parts of the Union, assembled at Washington to witness the inauguration of General Harrison. His ad- 1841. dress on that occasion was replete with wisdom; liberal and generous, and patriotic in its tone; a transcript of the sincerity of his own heart. His selection of officers to compose his Cabinet was unanimously confirmed by the Senate; at its head was Daniel Webster, as Secretary of State.

The certainty of a change of policy in the measures of the General Government inspired confidence in the commercial world, and the nation, made wiser by adversity, began to hope. But the expectations of the President's friends were doomed to be sadly disappointed. His first official act was to issue a proclamation, calling a special session of Congress, to meet on the 31st of the

CHAP. following May, to take into consideration the condition of

L. the country. Before that day arrived, the President was

1841. no more. Suddenly taken ill, all human remedies failed April. to give relief, and he expired, just one month after his inauguration, in his sixty-ninth year. For the first time, death had removed the Chief Magistrate of the Union when in office. The loss came home to the hearts of the people. Throughout the length and breadth of the land they vied with each other in doing honor to his memory. Since the death of Washington, the nation had not mourned a loss with such imposing ceremonies. This deep and pervading sentiment of sorrow was the tribute due the memory of a good man; one who had served his country with most scrupulous integrity for more than forty years; whose whole life, public and private, was without reproach. Though in public office the greater part of his life, his salaries had passed away in charities and hospitalities; to his house the humblest of the land as well as the most exalted, had been welcomed; the poor man's friend, he himself died poor. At its very first session after his death, Congress, "out of consideration of his expenses in removing to the seat of government, and the limited means which he had left behind," granted his widow one year's presidential salary-twenty-five thousand dollars.

31.

JOHN TYLER.

The Vice-President became the President, according to the provisions of the Constitution. He retained the Cabinet of his predecessor, giving them assurances of his May respect. Congress convened for the extra session at the time designated. One of its first measures was to repeal the Sub-Treasury act of the last administration. To this regulation for the keeping of the public funds much of the pressure in the money market was attributed.

The failures in the mercantile world had brought ruin

THE NATIONAL BANK-THE VETOES.

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upon thousands of upright and enterprising men. They CHAP. had become hopelessly bankrupt, in many instances, by circumstances beyond their control; involved in debts, 1842. which would forever crush their energies without benefitting their creditors, themselves, or the country. To relieve persons thus insolvent, Congress passed a general bankrupt law. The effect of the measure was beneficial, and when the necessity for its existence had passed away, it was repealed.

One of the issues involved in the last presidential election, was the policy of establishing a United States Bank or "Financial Agent," which should facilitate mercantile exchanges throughout the Union. The result of the election had shown that the majority of the people were in favor of such an institution. In compliance with this expression of the popular will, both Houses of Congress passed a bill chartering such a National Bank. Contrary to expectation, the President refused to give it his signature. Another bill was passed, modified in its provisions to accord with his own suggestions. This he also refused to sign. These successive vetoes raised a terrible storm of indignation against their author, though when nominated he was known to be opposed to the United States Bank. The great party, by whose votes he held his high position, charged him with double dealing; with betraying the trust they had committed to his hands. The members of his cabinet immediately resigned their places, and gave to the country their reasons for so doing. Daniel Webster alone remained, lest the public interests would suffer by his withdrawal before the completion of certain negotiations upon which he was then engaged.

Between the United States government and that of Great Britain two important questions of controversy remained unadjusted. One growing out of certain revolu