Van Buren was hardly inaugurated when the panic of 1837 burst upon the country. The banks were forced to suspend specie payment, many failed, and mercantile houses that had weathered other financial storms toppled over like tenpins. In two months the failures in New York and New Orleans amounted to $150,000,000. Early in May, a deputation of New York merchants and bankers called upon the President and asked him to put off the collection of duties on imported goods, to rescind the specie circular, and convene Congress in the hope of devising measures for relief. All that the President consented to do was to defer the collection of duties. Immediately the banks in New York suspended specie payments, and their example was followed by others throughout the country. The New York Legislature then authorized the suspension of specie payments for a year. This left the national government without the means of paying its own obligations (since no banks would return its deposits in specie) except by using the third installment of the surplus revenue that had been promised to the States. The country was threatened with financial ruin, and Congress convened in September. The President in his message proposed the establishment of an independent treasury for the custody of the public funds, and their total separation from banking institutions. Such a bill failed, but it became a law in 1840. Congress, however, obtained temporary relief by authorizing the issue of $10,000,000 in treasury notes. The fact remained, however, that the country was rich, and though much distress prevailed, the financial stress began to lessen as more healthy methods of business were adopted. In 1838 most of the banks resumed specie payments, but the effect of the panic was felt for years. Since the distress occurred while Van Buren was President, the blame was placed by many upon the administration. At that time the present Dominion of Canada was divided into two provinces, known as Upper and Lower Canada. Dissatisfaction with some of the features of Great Britain's rule caused a rebellion in Lower Canada in 1837. Much sympathy was felt for them in this country, and especially in New York, from which a force of 700 men seized and fortified Navy Island, in Niagara River. There were plenty of loyalists in Canada, who made an attempt to capture the place, but failed. On the night of December 29, 1837, they impetuously attacked the supply steamer _Caroline_, killed twelve of the defenders, set the boat on fire, and sent it over Niagara Falls.