way. The entire country seemed much more prosperous than ever before. At last President Jackson deemed it advisable to limit the payment of paper money for government debts. Senator T. H. Benton drafted the Specie Circular. This act provided that the United States government would not receive anything but specie, that is, gold or silver coin, in payment for public lands, taxes, debts, etc. This caused a profound disturbance, for if the government did not wish to be paid in the usual bank paper money, then the general public did not wish to accept this currency.

Paper Money Depreciates. So great was the feeling, that paper money began to depreciate in value, many depositors demanded coin from their banks, and merchants refused to accept the bank bills. There was not enough gold and silver in the country to meet the sudden demand. Banks all over the United States began to fail. Persons who had borrowed money were utterly ruined. Business houses also felt the effects; factories were closed; projects, like canal and railroad building, were stopped; and thousands of persons were thrown out of employment. Effects of the Panic. In every walk of life the distressing effects of the panic were felt. It was deemed the greatest financial trouble that had befallen the United States. During the winter following the panic, untold hardships fell upon the poor and unemployed, and the price of food went up; flour rose to eleven dollars a barrel and corn to a dollar and fifteen cents per bushel. In some of the larger cities "bread riots" occurred, and the public urged the government to lend aid, but the government's finances were also in a bad condition and no assistance could be given. The Specie Circular was issued at the close of Jackson's administration. His successor, Martin Van Buren, entered upon his presidential career with the crash of this widespread financial disorder in every state in the Union.

Van Buren's Administration. President Van Buren was from New York, where he had long taken part in the state's politics. He was a close friend of Jackson's and had supported the latter in his successive elections. Van Buren had served as Vice President during Jackson's last administration and was thoroughly a Democrat in all his ideas and policies.

When he came to office, he was immediately occupied with the financial disasters of the time. Thus as conditions grew from bad to worse, he was held responsible for the hard times on the ground of supporting the Specie Circular and of suggesting a plan for protecting the government's finances which did not meet the approval of the public. Subtreasury System.

MARTIN VAN BUREN.

The President held fast to the idea that the money of the United States should be kept separate from banking institutions, and he advocated what was known as the United States Subtreasury system. Under this plan the money of the United States was to be kept in strong vaults or places of deposit, and all financial affairs run on a specie basis. The President and his colleagues were sharply criticized for this plan, as it kept a large amount of money out of circulation while the hard times were demanding some relief. The Independent Treasury bill failed to go into effect until 1840; and although it was lightly regarded, it later developed into a

plan that the United States government has considered safe enough to continue.

The New Campaign. The Whig Party was convinced that the Democratic policies of State Banks and the Distribution of the Surplus were the causes of the panic, and that Jackson and Van Buren were responsible for the hard times in the country. This sentiment began to grow. In 1839 a Whig convention met in Ohio and nominated General William Henry Harrison for the Presidency.

General Harrison. - General Harrison, like Jackson, was one of the great heroes of the War of 1812. And, like

WILLIAM HENRY HARRISON.

Jackson, he had won distinction as an Indian fighter. Harrison's administration as governor of Northwest territory had been so successful that his friends and neighbors had confidence in his executive ability. He was a plain, unaffected man whose whole life had been spent in the West, and whom the simple life of the new country had given a broad view of the resources and

opportunities of the United States. The campaign in his favor was one of the most enthusiastic that the nation had known. Stories of his log-cabin home, his victories over Proctor and Tecumseh, were told and retold with ardor.

Symbols of the Whig Party. When a Democratic paper sneeringly declared that Harrison was the type of man who could be easily satisfied with a barrel of cider and a log cabin, the Harrison adherents took up the re

mark and promptly made these the symbols of the Whig Party, and the campaign became known as the "cider and log cabin" era. Miniature log cabins were hauled about on wagons, meeting houses were built in this style, women pieced quilts from a log-cabin design, and the country felt that the common people were to be benefited by the new movement.

Van Buren was often very bitterly assailed. As the candidate on the Democratic ticket he was described as the

ONE OF THE SYMBOLS OF THE WHIG PARTY.

wealthy aristocrat " who always held rich political positions and who lived in a palace and drank French wines. It was an exciting time with lively meetings, stirring songs, and hearty enthusiasm.

- Harrison's Death. In the early part of the campaign no discussion was opened on the subject of the bank question, for it seemed that Harrison himself was the main issue. Upon his election, however, the Whigs now confidently believed that their principles would be carried out, but they were doomed to be disappointed, for within a month after Harrison had been inaugurated he was taken ill and died.

John Tyler. He was succeeded by John Tyler, a Democrat of the old type, who had split from the Jacksonian Party, but who held the old Jeffersonian idea of tariff for revenue only, opposition to the United States Bank, and other principles that were not in accord with the Whig Party.

Tyler's Policies. - When Tyler was placed on the ticket with Harrison, he was selected because of his power with

JOHN TYLER.

the Democrats who did not favor Jackson or Van Buren and who were not willing to go over to the Whig Party entirely. Harrison was the great thought before the American people, and no one considered the probability of a Tyler administration; thus a strange political situation arose that had to be met and rearranged. Clay and Webster, with a number of other leading Whigs, dominated both houses;

and, with the election of Harrison, they proceeded to put forward certain Whig measures, such as the revival of the National Bank charter and the national control of public improvements. A revision of the tariff was also to be an issue.

Tyler, proving himself to be a true Democrat, promptly vetoed the Whig measures, thereby causing great disappointment to the party and making many enemies in both houses. He quarreled with the members of his Cabinet so that all resigned with the exception of Webster, who remained in