maintain the laws. This only increased the exasperation in South Carolina: the governor of the state, by the authority of the legislature, issued a counter-proclamation, urging the people to be faithful to their primary allegiance to the state, and to resist the general government in any attempt to enforce the tariff laws. General orders were also issued to raise volunteers for repelling invasion, and supporting the rights of the state. General Jackson hereupon addressed a message to congress recommending such measures as would enable the executive to suppress the spirit of insubordination, and sustain the laws of the United States.

Everything thus betokened a civil war. But an appeal to South Carolina by the general assembly of Virginia, and the passage of a bill modifying the tariff (introduced by Henry Clay, and commonly known as the 'compromise act'), joined with a manifestation of firmness and energy on the part of the executive, served to allay the ferment in South Carolina, and led to a repeal of the nullifying ordinances.

On the 4th of March, 1833, Andrew Jackson entered on a second term of office. The charter of the United States bank being about to expire, the president who had before expressed to Congress his doubts of the expediency of continuing that institution the depositary of the funds of the United States, directed the secretary of the treasury, Mr. Duane, to remove the government deposits from the bank. This Mr. Duane declined to do. He was immediately removed from office by the president; and Mr. Taney was appointed in his place, by whom the deposits were removed, and placed in the custody of several State banks. This measure was strongly censured by a resolution which passed the senate, June 9, 1834.

The country was now disturbed with serious apprehensions of a collision with France. By a treaty, negotiated in 1831, by Mr. Rives, the French government had agreed to make indemnity for spoliations committed on American commerce during the reign of Napoleon; but it had failed to fulfill its stipulations. In December, 1834, the president recommended reprisals upon French commerce. This was deemed by Congress not expedient at present. Happily, however, the danger of hostile collision was removed in the course of the next year by the action of the French government in making provision to fulfill its stipulations.

The most important act of the first session of the twenty-fourth Congress, which began December 7th, 1835, was a law directing the deposit, under certain regulations, of the moneys of the United States in several of the State banks, and distributing the surplus revenue among the several States.

In December, 1835, one of the most destructive fires on record occurred in the city of New York. The amount of property destroyed is computed not to have fallen much short of twenty millions of dollars, without estimating the injury and loss from suspension and derangement of business.

Near the close of this year, the Seminole Indians, refusing to remove from Florida to the lands appropriated for them west of the Mississippi, the country became involved in a war with them; and it was not until 1842 that they were finally subdued and sent west.

On the 11th of July, 1836, the receivers of public money were instructed, by a circular from the treasury department, to receive nothing but gold and silver in payment for public lands.

On the 16th of January, 1837, the expunging resolution' (so called)

introduced by Mr. Benton, passed the senate by a small majority. By this act the resolution of the senate passed June 9, 1834-censuring the president for removing Mr. Duane, and ordering the withdrawal of the United States deposits from the bank of the United States-was expunged from the journal of the senate. Against this proceeding, Mr. Webster, of Massachusetts, in behalf of himself and his colleagues, read a solemn pro

test.

On the 4th of March, 1837, Martin Van Buren became president of the United States. Mr. Van Buren's administration was, in its general policy, a continuation of that of his predecessor. Scarcely, however, had he entered upon office, when the country was overwhelmed by one of the most severe commercial revulsions ever known. For several years previous, the wildest spirit of speculation had prevailed throughout the country. Vast public works were undertaken by States and chartered companies; immense importations of foreign goods were made; and real estate, especially lots in cities and towns, went up a hundred fold beyond its intrinsic value. The multitude of State banks that had been chartered, after the expiration of the charter of the United States bank, and the consequent excessive expansion of the paper currency, had contributed to increase the spirit of speculation. At length a crisis came; and the revulsion was proportionately severe. Some idea of it may be formed from the fact that a list of failures in the city of New York (including only the more considerable, and omitting hundreds of less importance), shows a total amount of more than sixty millions of dollars. All credit, all confidence was at an end. On the 10th of May, all the banks of the city of New York suspended specie payments, and the suspension became general throughout the country. The general government became involved in the universal embarrassment-the banks in which its deposits were placed having stopped in the general suspension. The government still insisted, however, upon all postages and duties being paid in specie or its equivalent, and even refused its own checks and drafts when offered in payment of custom-house bonds. In this state of things, the president convoked an extra session of Congress, which began on the 4th of September. Agreeably to the recommendation of the executive, as measures for the immediate relief of the general government, Congress passed a law postponing to the 1st of January, 1839, the payment to the States of the fourth installment of the surplus revenue; and authorizing the issue of ten millions of treasury notes, to be receivable in payment of public dues. The president also recommended the separation of the fiscal operations of the government from those of corporations or individuals.' A bill in accordance with this recommendation-commonly called the sub-treasury bill, placing the public money in the hands of certain receivers-general, subject to the order and control of the treasurer of the United States-passed the senate, but was lost in the house.

At the next regular session of congress (December, 1837-July, 1838), a reissue of treasury notes was authorized. The sub-treasury system was again urged upon the attention of congress, but was not adopted. On the 13th of August, 1838, the banks throughout the country generally resumed specie payments: but in October following, the banks of Philadelphia again suspended, and their example was followed by the banks in Pennsylvania, and in all the states south and west. The banks of New