2004-6-16
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VOICE ONE:
THE MAKING OF A NATION -- a program in Special English.
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Martin Van Buren took office as
America's eighth president in eighteen-thirty-seven. Not long after,
the United States suffered a severe economic depression. Many state
banks produced more paper money than they could guarantee with gold
or silver. As more paper money was put into use, the value of the
money fell. Prices rose sharply. Some people could not buy the food
and other things they needed. In a short time, the demand on banks
to exchange paper money for gold and silver grew too heavy. The
banks stopped these exchanges. They said the situation was only
temporary. But the crisis continued.
VOICE TWO:
Many of the weaker state banks closed after gold and silver
payments were suspended. Those that stayed open had almost no money
to lend. Businessmen could not pay back money they owed the banks.
And they could not get loans to keep their businesses open. Many
factories closed. Great numbers of people were out of work.
The federal government itself lost
nine-million dollars because of bank failures. Businessmen said the
government was to blame for the economic depression. They said the
biggest reason was an order made by former President Andrew Jackson.
Jackson had said the government would not accept paper money as
payment for the purchase of government land. It would accept only
gold or silver.
Opponents of the order said it had caused fear and mistrust. Even
some of Jackson's strongest supporters said the order should be
lifted. They said it had done its job of ending land speculation.
Now, they said, it was hurting the economy.
VOICE ONE:
Two of President Van Buren's closest advisers urged him to
continue the order. Lifting it, they argued, would flood the federal
government with paper money of questionable value.
Van Buren was troubled about the government's money. He wanted to
make sure the government had enough money. And he wanted this money
safe until needed. At the same time, Van Buren did not believe the
federal government had the responsibility for ending the depression.
And he did not believe the government had the right to interfere in
any way with private business. So Van Buren decided to continue the
order. No government land could be bought with paper money.
The economy got worse. The president called a special meeting of
Congress. In his message to Congress, Van Buren said "over-banking
and over-trading" had caused the depression. He proposed several
steps to protect the government.
VOICE TWO:
Van Vuren asked Congress to postpone payment of surplus federal
government money to the states. He said the money would be needed to
operate the federal government in the coming year. He also asked
Congress to pass a law permitting the government to keep its own
money in the Treasury, instead of putting it in private banks. This
was the so-called "independent treasury" bill.
The opposition Whig Party denounced the president's proposals. It
criticized Van Buren for thinking only of protecting the federal
government...and not helping businessmen, farmers, and the states.
Whig opposition was not strong enough to defeat all the president's
proposals. Congress approved a bill to postpone payment of surplus
federal government money to the states. But the Whigs -- together
with conservative Democrats -- rejected the proposal for an
independent Treasury.
VOICE ONE:
America's Treasury Department received money when it collected
import taxes and sold land. It used this money to pay what the
government owed. The Treasury did not, however, hold the money from
the time it was collected to the time it was paid out. The Treasury
put the money in private banks. President Van Buren wanted to end
this situation. He wanted a law to permit the Treasury to keep
government money in its own secure places.
The Whigs argued that such a law would give presidents too much
power over the economy. Some Democrats who believed strongly in
states' rights also opposed it. Between them, they had enough votes
in Congress to defeat the proposal.
VOICE TWO:
President Van Buren tried again the following year to get
approval for an independent Treasury. Again, the proposal was
defeated.
Finally, in June, eighteen-forty, Congress passed a law
permitting the Treasury Department to hold government money itself.
Van Buren signed the bill. The economic depression of
eighteen-thirty-seven lasted for six years. It was the major problem
-- but not the only problem -- during Van Buren's one term as
president.
VOICE ONE:
In foreign affairs, one of the chief problems Van Buren faced was
a dispute with Britain about Canada. Canadian rebels had tried two
times to end British rule of Canada. They failed both times. Rebel
leaders were forced to flee to safety in the United States. There
they found it easy to get men and supplies to help them continue
their struggle.
The rebels built a base on a Canadian island in the Niagara River
which formed part of the border between the two countries. They used
an American boat to carry supplies from the American side to their
base. In December, eighteen-thirty-seven, Canadian soldiers crossed
the Niagara River and seized the boat. One American was killed in
the fight.
VOICE TWO:
For a while, Canadian forces and Canadian rebels exchanged
attacks on river boats. A number of American citizens fought with
the rebels. President Van Buren was troubled. He declared that the
wish to help others become independent was a natural feeling among
Americans. But, he said no American had a right to invade a friendly
country. He warned that citizens who fought against the Canadian
government, and were captured, could expect no help from the United
States.
VOICE ONE:
Another problem between the United States and Canada at that time
concerned the border along the state of Maine. That part of the
border had been in dispute ever since seventeen-eighty-three when
Britain recognized the independence of the American states.
Years later, the king of the Netherlands agreed to decide the
dispute. The king said it was impossible to decide the border from
words of the peace treaty between Britain and the United States. So
he offered what he believed was a fair settlement, instead. The
United States would get about two times as much of the disputed area
as Canada. Britain accepted the proposal by the king of the
Netherlands. The United States did not. The United States refused,
because the state of Maine would not accept it.
VOICE TWO:
In eighteen-thirty-eight, Britain withdrew its acceptance of the
proposal. And canadians entered the disputed area. The governor of
Maine sent state forces to the area. The soldiers drove out the
Canadians and built forts. Canada, too, began to prepare for war.
President Van Buren sent General Winfield Scott to Maine. Scott
was able to get the governor to withdraw his forces from the
disputed area. He also received guarantees that canadian forces
would not enter the area. The danger of war passed.
VOICE ONE:
Americans in the border area, however, were angry with President
Van Buren. They believed Van Buren was weak, because he did not want
war. Not only in the northeast was the president losing support.
People all over the country were suffering because of the economic
depression.
Most people believed Van Buren was responsible for their
troubles, because he did not end the depression. The economy had
fallen apart because of the hard money policies of former President
Andrew Jackson, and the opposition to those policies by businessmen
and bankers. And Van Buren did nothing to change those policies.
VOICE TWO:
Van Buren had been a good political adviser to President Jackson.
But he had not been a strong president. He was unable to make the
people understand his policies. The opposition Whig Party was happy
over these developments. It saw an excellent chance to win the next
presidential election.
The issues in American politics before the election of
eighteen-forty will be our story in the next program of THE MAKING
OF A NATION.
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VOICE ONE:
You have been listening to the Special English program, THE
MAKING OF A NATION. Your narrators were Tony Riggs and Harry Monroe.
Our program was written by Frank Beardsley.