Part Ten: Of States and Banks
Admission of Pembina and Itasca:
After Tejas and Houston had been brought into the Union, northern congressmen were clamoring for new states to be created out of the lands in Pembina Territory. The population of the territory had been increasing as immigrants poured in and as copper mining boomed in the region. By the beginning of the Polk administration, many cities and forts had been founded along the many rivers and lakes in the area. In the summer of 1847, Pembina Territory as divided by the Minnesota and Red Rivers, and the state of Itasca was created from the eastern portion with Duluth at the western end of Lake Superior as its capital.
A year later, there were many pressing for the admission of Pembina to the Union. However, there were problems with the native Sioux tribes living in the region. After forts were built at positions on the east side of the Missouri, settlers and soldiers began coming to the region. The settlers tended to cluster around the forts to protect them from raids by the native Americans for a while, but soon the population grew large enough that the government of Pembina Territory decided that buying land from the Sioux was necessary. Representatives from the Sioux tribes and the United Staes government met in early 1848, and negotiated treaties regarding the movement of the Sioux and other tribes in the area.
The agreements either states that the tribes would live in peace with the settlers in their current living areas, or that they could move north or west across the Missouri River. Despite the Sioux tribes' signing of the treaties, compensation was often never paid because of corruption or the money was sent directly to settlers and traders who Sioux leaders had become indebted to. Pembina was finally admitted as a state in late 1848, with the first state capital at Yankton on the Missouri.
Expiration of the Third Bank:
With Polk coming into office and the Democrats gaining a majority in the Senate once again, the era of the Third Bank was coming to a close. The bank's charter was set to expire in 1845, and despite the lobbying by the Whig congressmen to renew the charter, any bill that was passed to renew it was vetoed by Polk. The Bank finally expired at the end of 1845, and Biddle, who had been the president of the Second and Third Banks, died soon after.
However, not all policies from the Third Bank were discarded. The issuing of United States notes was kept, but moved under the jurisdiction of the United States Treasury Department. The Treasury continued to issue these US notes, and backed them with gold and silver, which could be redeemable at select Treasury offices around the country. These becamse the first official national currency and, while not going far in replacing the use of coins, were often used for large-scale purchases and increased the credibility of paper currency in the United States, leading to the repeal of the Coinage Act passed by President Calhoun a decade earlier.