he would take the responsibility. This paper was written by Taney, and evidently intended not only for the members of the administration, but for the public. The Cabinet, with the exception of the Secretary of the Treasury, bowed to Jackson's will. But Duane would not shelter himself behind the President's assumed responsibility to do an act which, under the law, was to be his act. He also refused to resign. If he had to obey or go, he insisted upon being removed. Jackson then formally dismissed him, and transferred Roger B. Taney from the attorney generalship to the treasury. Benjamin F. Butler of New York, a friend of Van Buren, was made Attorney General.
Taney forthwith ordered the removal of the deposits from the Bank of the United States; that is to say, the public funds then in the bank were to be drawn out as the government required them, and no new deposits to be made in that institution. The new deposits were to be distributed among a certain number of selected state banks, which be came known as the “pet banks.” The amount of government money at that time in the United States Bank, which was to be gradually drawn out and not to be replaced by new government deposits, was $9,891,000. The bank resolved to curtail its loans to the extent of nearly $7,000,000, which sum had been the average of government deposits for several years. The money market became stringent. Many failures occurred. The general feeling in business circles approached a panic. The whole country was in a state of excitement.
