Martin Van Buren announced his intention "to follow in the footsteps of his illustrious predecessor," and retained all but one of Jackson's cabinet. Van Buren had few economic tools to deal with the
economic crisis of 1837. Van Buren advocated lower tariffs and free trade, and by doing so maintained support of the south for the Democratic party. He succeeded in setting up a system of bonds for the national debt. His party was so split that his 1837 proposal for an "Independent Treasury" system did not pass until 1840. It gave the Treasury control of all federal funds and had a legal tender clause that required (by 1843) all payments to be made in legal tender rather than in state bank notes. But the act was repealed in 1841 and never had much impact. Foreign affairs were complicated when several states defaulted on their state bonds, London complained, and Washington explained it had no responsibility for those bonds. British authors such as
Charles Dickens then denounced the American failure to pay royalties, leading to a negative press in Britain regarding the financial honesty of America. The
Caroline Affair involved Canadian rebels using New York bases to attack the government in Canada. On
December 29, 1837, Canadian government forces crossed the frontier into the US and burned the
Caroline, which the rebels had been using. One American was killed, and an outburst of anti-British sentiment swept through the U.S. Van Buren sent the army to the frontier and closed the rebel bases. Van Buren tried to vigorously enforce the neutrality laws, but American public opinion favored the rebels. Boundary disputes in May brought Canadian and American lumberjacks into conflict. There was no bloodshed in this
Aroostook War, but it further inflamed public opinion on both sides.
In a bold step, Van Buren reversed Andrew Jackson's policies and sought for peace at home, as well as abroad. Instead of settling a financial dispute between American citizens and the Mexican government by force, Van Buren wanted to seek a diplomatic solution. Also, in August of 1837, Van Buren denied Texas's formal request to join the United States. "Van Buren gave a higher priority to sectional harmony than to territorial expansion" ("Martin Van Buren" 103-114).
In the
Amistad Case Van Buren sided with the Spanish Government to return the kidnapped slaves. Also, he oversaw the "
Trail of Tears", which involved the expulsion of the
Cherokee tribe in 1838 from Georgia, Tennessee, Alabama, and North Carolina to the Oklahoma territory. Van Buren was determined to avoid war.
:"Van Buren entered the presidency not only as the heir to Jackson's policies, Jefferson's ideology of limited government, and Smith's principles of political economy, but also an accomplished politician with a statesmanlike vision of the dangers facing the nation. This complex heritage would shape the new president's response to the multiple challenges of 1837."("Martin Van Buren" 103-114)
In 1839,
Joseph Smith, Jr., the founder of the
Latter Day Saint movement visited Van Buren to plead for the U.S. to help roughly 40,000 Mormon settlers of Independence, Missouri, who were forced from the state in the
Mormon War there. The Governor of Missouri,
Lilburn Boggs, had issued an executive order on
27 October 1838, known as the "
Extermination Order". It authorized troops to use force against Mormons to "exterminate or drive [them] from the state". In 1839, after moving to Illinois, Smith and his party appealed to congressman and to President Van Buren to intercede for the Mormons. According to Smith's grand-nephew, Van Buren said to Smith, "Your cause is just, but I can do nothing for you; if I take up for you I shall lose the vote of Missouri."
Van Buren took the blame for hard times, as Whigs ridiculed him as
Martin Van Ruin. Van Buren's rather elegant personal style was also an easy target for Whig attacks, such as the
Gold Spoon Oration. State elections of 1837 and 1838 were disastrous for the Democrats, and the partial economic recovery in 1839 was offset by a second commercial crisis in that year. Nevertheless, Van Buren controlled his party and was unanimously renominated by the Democrats in 1840. The revolt against Democratic rule led to the
election of
William Henry Harrison, the
Whig candidate.