Page:The Presidents of the United States, 1789-1914, v. I.djvu/360

302 LIVES OF THE PRESIDENTS flation of values. Extensive purchases of public lands were paid for in paper until the treasury scented danger, and by the president s order in July, 1836, the "specie circular" was issued, direct ing that only gold or silver should be received for public lands. This caused a demand for coin, which none but the "pet banks" could hope to suc ceed in meeting. But these banks were at the same time crippled by orders to surrender, on the fol lowing New Year s day, one fourth of the surplus revenues deposited with them, as it was to be dis tributed as a loan among the states. The "pet banks" had regarded the deposits as capital to be used in loans, and they were now suddenly obliged to call in these loans. These events led to the great panic of 1837, which not only scattered thousands of private fortunes to the winds, but wrecked Van Buren s administration and prepared the way for the Whig victory of 1840. In foreign affairs Jackson s administration won great credit through its enforcement of the French spoliation claims. European nations which had claims for damages against France on account of spoliations committed by French cruisers during the Napoleonic wars had found no difficulty after the peace of 1815 in obtaining payment; but the claims of the United States had been superciliously neglected. In 1831, after much fruitless negotia tion, a treaty was made by which France agreed to