HKB
[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 in its attempt to interfere, but a bill to that effect was voted down by the adherents of the President.
[Sidenote: Distress in Spain]
In Mexico, Bustamente had again become President. In the neighboring State of Colombia, President Marquez, likewise, had himself re-elected. The influence of North American progress was shown in Cuba by the opening of the first railway there, long before the mother country, Spain, could boast of such an advance in civilization. There the civil war was still draining the resources of the country. On May 17, General Evans took Trun, but failed to follow up his success. In Portugal, the restoration of Pedro's Charta de Ley was proclaimed by the Duke of Terceira.
[Sidenote: Fall of Guizot]
[Sidenote: Death of Fourier]