and
Patent-Office burned down. Irreparable loss was caused by the destruction
of 7,000 models and 10,000 designs of new inventions. At the close of
Jackson's Administration some three thousand miles of railroad had been
constructed. Eight years previously, when he came into office, no railway
had ever been seen in America.

1837

[Sidenote: American financial crisis]

[Sidenote: Government relief measures]

[Sidenote: Sub-Treasury system]

[Sidenote: Texas independent]

The financial crisis of this year was not only one of the most severe, but
also the most remarkable in the financial history of the United States. A
Congressional act of the previous year provided that after January 1, 1837,
all surplus revenues of the government should be divided as loans among the
States. The amount to be distributed this year aggregated $28,000,000. No
part of this large sum was ever recalled. When the government called for
its deposits in order to distribute the surplus an immediate shrinkage of
specie was the result. As bank after bank suspended, it was found that the
paper issue had increased from $51,000,000 in 1830 to $149,000,000 in 1837.
Jackson's attacks on the National Bank had shaken public confidence in this
institution, and it likewise suspended specie payments. The mercantile
failures of a single fortnight in New York City amounted to $100,000,000. A
repeal of Jackson's order that payments for public lands should be in coin
filled the National Treasury with paper money. Congress met in special
session to relieve the financial distress. A law was passed authorizing the
issue of $10,000,000 in Treasury notes. This brought some relief. President
Van Buren's first message recommended the adoption by the government of
the Sub-Treasury plan. A bill for the establishment of an independent
treasury passed the Senate, but was defeated in the House by a union of
Whigs and Conservatives. The Sub-Treasury plan, as eventually carried out,
provided for complete separation of the National Bank and the government,
and established the principle that the government revenues should be
received in coin only. President Van Buren in his message specially
deprecated any interference by Congress in the struggle between Texas and
Mexico. Texas, which had been bargained away by Southern votes in 1819, was
now an eagerly desired prize. It had now become a part of Coahuila, and had
declared its independence. Still Congress persisted i