The people were clearly on his side, and he at once set to work to destroy the bank.

[Sidenote:  The bank and the government.]

[Sidenote:  Removal of the deposits, 1833. McMaster, 305-308.]

310.  Removal of the Deposits.—­In those days there was no United States Treasury building at Washington, with great vaults for the storing of gold, silver, and paper money.  There were no sub-treasuries in the important commercial cities.  The United States Bank and its branches received the government’s money on deposit and paid it out on checks signed by the proper government official.  In 1833 the United States Bank had in its vaults about nine million dollars belonging to the government.  Jackson directed that this money should be drawn out as required, to pay the government’s expenses, and that no more government money should be deposited in the bank.  In the future it should be deposited in certain state banks.  The banks selected were controlled by Jackson’s political friends and were called the “pet banks.”

[Illustration:  ANDREW JACKSON, 1815.  “Our Federal union, it must be preserved.”—­Jackson’s toast at the Jefferson dinner.]

[Sidenote:  Speculation in Western lands. McMaster, 309.]

[Sidenote:  The specie circular, 1836.]

311.  Jackson’s Specie Circular, 1836.—­The first result of the removal of the deposits was very different from what Jackson had expected.  At this time there was active speculation in Western lands.  Men who had a little spare money bought Western lands.  Those who had no money in hand, borrowed money from the banks and with it bought Western lands.  Now it happened that many of the “pet banks” were in the West.  The government’s money, deposited with them, tempted their managers to lend money more freely.  This, in turn, increased the ease with which people could speculate.  Jackson saw that unless something were done to restrain this speculation, disaster would surely come.  So he issued a circular to the United States land officers.  This circular was called the Specie Circular, because in it the President forbade the land officers to receive anything except gold and silver and certain certificates in payment for the public lands.

[Illustration:  A SETTLER’S CABIN.]

[Sidenote:  Payment of the national debt. McMaster, 309-310.]

312.  Payment of the Debt, 1837.—­The national debt had now all been paid.  The government was collecting more money than it could use for national purposes.  And it was compelled to keep on collecting more money than it could use, because the Compromise Tariff (p. 248) made it impossible to reduce duties any faster than a certain amount each year.  No one dared to disturb the Compromise Tariff, because to do so would bring on a most bitter political fight.  The government had more money in the “pet banks” than was really safe.  It could not deposit more with them.