amount of about $20,000,000 were destroyed. In June, 1836, Arkansas became a state, and in January, 1837, Michigan was admitted to the Union. In 1830 the first locomotive was built in the United States, and the Baltimore and Ohio, the first passenger railroad, was opened for fifteen miles in the same year.

The old political parties of the nation, which had not for some time previously been strongly marked, during Jackson's administration crystallized into permanent forms. The Whig party, under the able leadership of Henry Clay and Daniel Webster, was the

descendant of the old Federalists. The anti-Federal, known also as the Republican party of the early days of the Union, had come to be called the Democratic party as early as Jefferson's time. The candidate of the Democrats at the national election in the fall of 1836 was Martin Van Buren, of New York, who, it was understood, would continue Jackson's policy. He was elected by a large majority over the Whig candidate, General Harrison. No one feceived a majority of votes in the electoral college for the office of VicePresident, and the Senate accordingly chose Colonel Richard M. Johnson, also a Democrat, of Kentucky, to fill that office.

CHAPTER L.

VAN BUREN'S ADMINISTRATION-1837-1841.

Sketch of Van Buren-Speculation-The Specie Circular-Distribution of the national surplus-The panic of 1837-Many banks suspend specie payment-An extraordinary session of Congress called-Treasury-notes authorized-The Independent Treasury Bill-Continuance of the Seminole War-Osceola captured-His death-The Seminoles removed to the west-Insurrection in Canada-New Yorkers assist the insurrectionists-General Scott quiets the disturbance-The sixth census-An exciting Presidential campaign— Harrison and Tyler elected.

Born at

Martin Van Buren was of Dutch descent. Kinderhook, New York, in December, 1782, he was in his fifty-fifth year at the time of his inauguration, on March 4, 1837. He had for many years been the leader of the Democratic party in his native state and had held the office of governor. He had also been a United States Senator, Secretary of State during part of Jackson's first term, and Vice-President during his second term.

In 1837, the first year of Van Buren's administration, occurred a disastrous panic. The distribution of the national funds in the United States Bank made under Jackson's orders to various state banks led to a large increase in their issues of paper money, and their free loans of money increased the speculative spirit among the people. Real estate was the particular subject of their mania, and Jackson, previous to the expiration of his term of office, had instructed the land-agents to receive only specie in

payment for the public lands. By this famous Specie Circular the government was protected against loss from the depreciation of the currency, but it hastened the inevitable result. The banks were suddenly called on for large quantities of specie, and many of them. were forced to suspend payment. Moreover, Congress

had authorized the distribution of a surplus of nearly $40,000,000 which then existed in the treasury among the various states. The banks of deposit, after the 1st of January, 1837, were called on for the national funds in their possession, and many of these favored banks were also broken.

The result was wide-spread financial ruin. During the months of March and April, 1837, the failures in New York City alone amounted to more than $100,000,000. Early in May a committee of bankers and merchants from that city waited on the President and requested that he rescind the Specie Circular and call a special session of Congress to adopt some plan of relief. The President refused their petitions, and immediately the banks of New York, Boston, Philadelphia, and other cities suspended specie payment. Several of the states also were unable to pay their debts, and even the national government was er barrassed.

Van Buren was now obliged to convene Congress in an extraordinary session, which commenced in the early part of September, 1837. But little was accomplished except the passage of a bill authorizing the issue of treasury-notes not to exceed $10,000,000. Van Buren suggested the establishment of a subtreasury system, and the Senate passed the Independent Treasury Bill. It failed to pass in the House, however, and did not become a law till 1840. But in the meantime the business of the country revived in large measure, and in 1838 most of the banks resumed specie payment, though the effects of the panic were long felt.

Gen

The Seminole War continued in the south. eral Jessup had succeeded Scott in command of the United States forces. A treaty was signed by several chiefs two days after Van Buren's inauguration which promised peace, but Osceola and others still remained in arms. In October Osceola and a band of warriors came to Jessup's camp under a flag of truce. They were imprisoned and their brave leader was sent to Fort Moultrie, where he died of a fever the next year. On Christmas day, 1837, Colonel Zachary Taylor fought a severe battle at Lake Okeechobee with those

Indias who still held out. He lost over 100 men, but defeated the Indians, and for over a year pursued them through the swamps. In May, 1839, another treaty was signed, but it was not till 1842 that peace was finally secured by General Worth. Then the

Indians were sent to the west, and the seven-years' struggle ended. It had cost many lives and added a large sum to the national debt.

An insurrection that occurred in Canada in 1837 threatened trouble between the United States and Great Britain. The people of the United States, and especially those in the north, sympathized with the revolt, and many of them joined the forces of the insurgents. A party of 700 men from New York fortified Navy Island, in the Niagara River, and held that place against the Canadian Royalists. The latter, however, succeeded in firing the Caroline, a supplysteamer of the New Yorkers, and she was sent burning over Niagara Falls. The President issued a proclamation of neutrality, and dispatched a force under General Scott, who quieted the disturbance. For several years, however, the relations between our government and that of Great Britain were strained.

The census of 1840 showed that the population of the country had increased to over 17,000,000. During the last ten years the growth of the United States had been westward, and the center of population had moved fifty-five miles in that direction, and was now at Clarksburg, West Virginia.

The national election that was to determine the next President occurred in the fall of 1840. It was one of the most bitter campaigns which our country has ever been through. Van Buren was renominated by the Democracy, and their choice for Vice-President was divided between Richard M. Johnson and James K. Polk. The Whigs put in the field General William Henry Harrison, of Ohio, and John Tyler,