5. The lands of the Sacs and Foxes had been purchased by the government, but the Indians, influenced by the chief Black Hawk, refused to quit them. The government insisted that they fulfill their contract, and hostilities began in 1832. General Scott was sent with troops to Chicago to cooperate with General Atkinson. The latter waged a vigorous campaign, defeated the Indians, and made Black Hawk prisoner. The captive chief was taken to Washington and the great cities of the East. Returning to his own people, he advised them to make peace. The warriors abandoned the disputed lands and retired into Iowa. 6. Difficulties also arose with the Cherokees of Georgia--the most civilized of all the Indian nations. The President recommended the removal of the Cherokees to lands beyond the Mississippi. The INDIAN TERRITORY was accordingly set apart in 1834. The Indians yielded with great reluctance. More than five million dollars was paid them for their lands. At last General Scott was ordered to remove them; and during the years 1837-38, the Cherokees were transferred to their new homes in the West. [Sidenote: The Seminole War.] 7. More serious was the conflict with the Seminoles. The trouble arose from an attempt to remove the tribe beyond the Mississippi. Hostilities began in 1835, and continued for four years. Osceola and Micanopy, chiefs of the nation, denied the validity of a former cession of Seminole lands. General Thompson was obliged to arrest Osceola and put him in irons. The chief then gave his assent to the old treaty, and was liberated, but immediately entered into a conspiracy to slaughter the whites. 8. Major Dade, with a hundred and seventeen men, was now dispatched to reinforce General Clinch at Fort Drane, seventy-five miles from St. Augustine. Dade's forces fell into an ambuscade, and all except one man were massacred. On the same day Osceola, with a band of warriors, surrounded a storehouse where General Thompson was dining, and killed him and four of his companions. 9. In two successive engagements in December and February the Seminoles were repulsed. In October Governor Call of Florida, with two thousand men, overtook the savages in the Wahoo Swamp, near the scene of Dade's massacre. Here the Indians were again defeated and driven into the Everglades. 10. In the mean time, the President had put an end to the Bank of the United States. After vetoing the bill to recharter that institution, he conceived that the surplus funds which had accumulated in its vaults had better be distributed among the States. Accordingly, in October of 1833 he ordered the funds of the bank, amounting to ten million dollars, to be distributed among certain State banks designated for that purpose. The financial panic of 1836-37, following soon afterward, was attributed by the Whigs to the destruction of the national bank and the removal of the funds. But the adherents of the President replied that the panic was attributable to the bank itself.