company organized (1881). Under these changes the Community still continues.

Spiritualism. Hydesville, near Rochester, was the birthplace of modern spiritualism. A German by the name of Fox and his two daughters first heard the rappings from the walls and furniture (1848). Soon the girls learned the meaning of the sounds and were able to converse with departed spirits, so they professed and many believed. Their revelations created much interest, and soon "circles" were formed all over the country and in Europe (1852). One of the sisters confessed the fraud, but repudiated her confession before she died. Judge Edmonds, a New York lawyer of fame, wrote a book on it. There are about 50,000 spiritualists in the United States to-day.

CHAPTER XXXV.-STATE AND NATIONAL POLITICS

Van Buren's Leadership.-The election of 1832 had both local and national importance. Van Buren was expected to succeed Jackson as President, but the latter accepted the nomination for a second term with Van Buren as Vice-President. At this time Van Buren was the idol and leader of the New York Democrats. The National Republicans met at Buffalo (Nov., 1830) to urge the election of Clay to the presidency, and a month later in New York City publicly nominated him. A Clay party in favor of protection for home industries was organized and spread throughout the state, and a state convention at Albany sanctioned Clay's nomination (June 3, 1831).

Election of 1832.-In the state election the Antimasons at Utica nominated Granger and Stevens to head the ticket (Nov. 21, 1832), and the National Republicans indorsed them. The Democrats sneered at this "coalition" and named Marcy and Tracy at Herkimer to lead them (Sept. 19). The state issues were Van Buren's ascendency, state and national banks, and the canals. The national issues were protection, finance, and internal improvements. In a hotly contested election Marcy defeated Granger by less than 10,000 votes for governor, while Jackson and Van Buren were victorious in the nation. It was a great triumph for New York Democrats. Their leader was now Vice-President and a candidate for President, and they were in complete control of the state government. Marcy was reelected in 1834 and 1836 by the shrewd management of the Albany Regency.

The "Coalition."-In 1832 the "coalition," or antiJacksonian party, was made up of masons and Antimasons, old Clintonians and Clayites, whose double bond of union was hatred of Jackson and the Regency, and love for Clay and his policy. Jackson resolved to remove the government's deposits from the Bank of the United States (Sept., 1833), and great financial distress followed. This, greatly exaggerated, was used as the basis of a new party. In New York the National Republicans assumed the name of Whigs in 1834 and were immediately joined by the Antimasons, but their nominee for governor, William H. Seward, was defeated by Marcy with 13,000 majority.

Equal-Rights Men and the "Loco-Focos."-The EqualRights Party, growing out of the Working Men's Party

(1830) and composed mostly of Democrats, opposed all banks and monopolies. When Tammany Hall met (1835) to confirm the regular candidates for city offices, the Equal-Rights men attended to defeat the action. In a scrimmage the lights were put out, but the anti-monop olists quickly lighted the room with candles and locofoco matches and claimed that they had won the contest. The regular candidates won at the polls, however, and these revolting Democrats were dubbed "Loco-Focos," a name soon applied in derision to all Democrats. In 1836 they set forth their principles in a rabid " Declaration of Rights," nominated a state ticket, and polled over 3,000 votes. The New York Evening Post supported them. After 1837 they reunited with the Democrats. In this election Marcy and Tracy again defeated the Whig candidates, Buel and Barstow, by 30,000 votes.

Van Buren Elected President.-Van Buren was Jackson's heir to the White House, and was nominated without much opposition. The Whigs named their first national candidates, General Harrison and Francis Granger. Their only hope was to throw the election into the House of Representatives. Van Buren was elected in a disorderly campaign, and for the first time New York had a son in the presidential chair. March 4, 1837, Jackson

MARTIN VAN BUREN

and Van Buren rode to the capitol in a "beautiful

phaeton" made from the timber of the Constitution, an old frigate, donated by the New York Democrats. The new President had to face at once the panic of 1837, caused by Jackson's financial policy.

Banks. The first money used in New York was Indian wampum, which was replaced by paper bills of credit and coin. The Revolution showed the need of good money and sound banks. The Bank of North America (1781) was approved by the legislature, but a charter was refused the Bank of New York, which began business without it (1784). Hamilton's Bank of New York was incorporated (1791), and others soon followed. Charters were granted as political favors, and by 1814 there were 26 banks with a capital of $19,000,000, and by 1829 the number was 40. They helped the government and promoted the prosperity of the people. When the panic came in 1837 New York had 98 banks. The New York Bank for Savings (1816) was the first of its kind in the state, and in 1852 there were 42 similar institutions. They measure the thrift of the working people. In 1829 three commissioners were appointed to superintend the banks, and a similar office still exists.

Panic of 1837.-The remarkable growth of the country after the War of 1812, the mania for land speculation, and the inflation of the currency brought on the panic of 1837. Gold rose in value and paper money fell. Credit was refused and payment in gold demanded. The panic resulted. Business was prostrated and misery and distress raised their gaunt heads. A mob of "Jackson Jacobins " in front of the City Hall in New York cried: "Bread, meat, rent, fuel! Their

prices must go down."

down." Another meeting in City Hall Park demanded the prohibition of paper bills under $100 and the use of gold and silver, denounced landlords and condemned storekeepers. A riot resulted: a flour warehouse was robbed, and the militia had to be called out. Outside of the metropolis banks failed, improvements stopped, factories were closed, thriving western towns stood still, mills were shut up, credit was refused, debts were unpaid, and even the state had not credit enough to borrow $500,000 at six per cent.

Political Effect. The party in power was blamed for the panic. Van Buren was petitioned to check it by proper legislation. For the first time in years the Democrats were defeated in a state election (1837). The Whigs elected 101 out of 128 assemblymen and all but one of the senators, and also the mayor of New York City (1838). The shrewd old statesman Marcy was again pitted against a fiery young orator, William H. Seward (1838). The Equal-Rights men opposed Marcy as a speculator, and the banks worked against him. Seward was elected governor by over 10,000 majority. Van Buren and the Regency had lost their power in New York, and the electors of his own state refused to support Van Buren for re-election (1840).

New York in 1838.-Well could Governor Seward say to the legislature: "History furnishes no parallel to the financial achievements of this state. It surrendered its share in the national domain and relinquished for the general welfare the revenues of its foreign commerceequal generally to two thirds of the entire expenditure of the federal government. It has nevertheless sustained the expenses of its own administration, founded