less] Jackson and the United States Bank. 383 committees of each House reported in favour of the Bank and against the President. But the renomination of Jackson in 1831 led Clay to believe that the question of re-charter should be decided at once. In the session of 1832 accordingly the Bank, much against its will, applied for a re-charter. A bill for that purpose was passed in each branch of Congress, and was promptly vetoed by the President. It could not be passed over the veto ; and the issue thus raised went before the people in the presidential campaign. To Jackson his re-election appeared to be a definite instruction from the people to destroy " the monster " ; and with this end in view, he informed his Cabinet, in September, 1833, of his determination to remove the government deposits from the Bank, and take all responsibility for the act. The official order for removal could, however, be issued by no one save the Secretary of the Treasury. The Secretary, William J. Duane, stoutly refused to obey Jackson's directions. He was instantly removed from office, and Roger B. Taney was appointed in his place. Then the order was issued ; and collectors of the revenue were commanded on and after October 1, 1833, to make no more deposits in the Bank of the United States or any of its branches, but in such State Banks, and in such only, as the Secretary might designate. The effect of this arbitrary and unnecessary order on the business of the country was disastrous. The government money in the Bank and its branches was to be gradually withdrawn to meet current expenses till no more of it remained. In order to meet the drafts promptly, the Bank was forced to call in loans, and to refuse to discount paper. The State Banks, fearing that the central Bank might call on them for a settlement of accounts, followed suit ; and in a few weeks the business world had to face a money famine. All building operations stopped in the great cities ; manufacturing establishments shut down ; thousands of working- men were thrown out of employment; and the price of money and exchange rose to a ruinous height. When Congress met in December, 1833, the Senate placed on its journal a resolution censuring the President for ordering the deposits to be removed, and refused to confirm the appointment of Taney as Secretary of the Treasury; while the people beset both Houses with petitions praying for a restoration of the deposits and an Act to regulate the currency. These "distress petitions," as they were called, numbered more than 600, were signed in some instances by from 5000 to 10,000 names, and came from mass- meetings, from members of various trades and occupations, from chambers of commerce, banks, the governing bodies of cities and towns, and the legislatures of many States. But the President stood firm; Congress took no action ; and the deposits continued to be made in the " pet banks," this being the name given to the State institutions designated as government depositories. While the excitement aroused by the removal of the deposits was at its height, the spring elections came on in some of the States. The OH. XII.
