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 protest.
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
