. A history of the United States . milies, was born in New York,1782. His experience in politicalmatters was wide ; for besides hold-ing a number of offices in his nativestate, he had been minister to Eng-land, senator, and announced his policy to be thesame as that of Jackson, sayinghis aim would be to tread in thefootsteps of his illustrious prede- MARTIN VAN BUREw. •,, xt p , , i i • cessor. Unfortunately this wasimpossible, and the errors of Jacksons administration re-coiled upon him. 243. Pet Banks; Panic of 1837. —When Jackson hadordered the cessation of the deposits in
. A history of the United States . milies, was born in New York,1782. His experience in politicalmatters was wide ; for besides hold-ing a number of offices in his nativestate, he had been minister to Eng-land, senator, and announced his policy to be thesame as that of Jackson, sayinghis aim would be to tread in thefootsteps of his illustrious prede- MARTIN VAN BUREw. •,, xt p , , i i • cessor. Unfortunately this wasimpossible, and the errors of Jacksons administration re-coiled upon him. 243. Pet Banks; Panic of 1837. —When Jackson hadordered the cessation of the deposits in the United StatesBank, certain banks in the different states were chosen asplaces of deposit; good care was taken that those banks shouldbe chosen whose directors were in harmony with the Presi-dent. Hence they were called pet banks. As a result ofthis system of deposit, a large amount of money was thrownupon the open market here and there, and as has always beenthe case under such circumstances, speculation began, first in. PET BANKS; PANIC OF 1837. 221 land, then in almost everything. Soon there was not moneyenough to meet the demand, and in order to supply it, thebanks began to issue bills with but little gold or silver toredeem their notes should they be presented for banks were formed on little or no capital, and bills wereissued with little or no specie back of them. Still personstook the bills of these wildcat banks as long as they couldget others to take them. All this had happened late in Jack-sons second term. When it appeared that the governmentwas losing money by accepting in payment for public lands,bank bills which often turned out to be worthless, Jacksonissued through the Secretary of the Treasury the SpecieCircular, which directed the government agents to receivenothing but gold in payment for land sold. As a large partof speculation was in public land, the effect of this order wasquickly felt. Purchase of land was greatly curtailed, andth
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