In America, likewise, President Jackson had found it necessary to assert the rights of the United States by means of a punitive expedition. This grew out of the affair of Quallah Buteau on the Island of Sumatra in the Dutch East Indies. The American ship "Friendship" had put in there during the previous year to load with pepper. The captain, whose men were on shore, permitted the crew of a Malay boat to come on board. There was not a sign of danger, when suddenly the Malays attacked the Americans, killing the first officer and two sailors and plundering the vessel. They then tried to beach the vessel, but two other American ships compelled the Malays to flee. The Rajah of Quallah Buteau appropriated the plunder and refused to return it. Commodore Downs, with the frigate "Potomac," was ordered to Sumatra. He reached there early in February. Finding that nothing could be accomplished by peaceful means he landed two hundred and fifty of his sailors under command of Lieutenant Shubrick. The Malays refused to give or receive quarter. Their palisades were torn down and turned into a bridge, and the fort was stormed. The Stars and Stripes were hoisted. Another fort with its magazines was blown up. The town was occupied. In all one hundred and fifty Malays were killed and wounded, among them the Rajah. The total loss of the Americans was two men. The offending town was razed.
[Sidenote: Struggle over United States Bank]
Jackson's domestic policy during this year brought him into conflict with two powerful factors. One was the United States Bank at Philadelphia. Jackson disapproved of the Bank on the ground that it failed to establish a sound and new form of currency. A financial panic had been caused by worthless paper currency issued by so-called "wildcat" banking institutions. A petition for the renewal of the National Bank's charter, which was to expire in 1836, was laid before the Senate. Both Houses passed a bill to that effect. Jackson vetoed it, and a two-thirds vote wherewith to override his veto could not be obtained for the measure. Jackson then ordered the Bank's deposits removed. He read to the Cabinet a long paper, in which he accused the officers of the Bank of mismanagement and corruption, and stated that he would assume the entire responsibility for the removal of the deposits. The Bank made a stubborn fight and spent over $50,000 in defending itself. In the Senate, Benton was the chief opponent of the Bank, and Webster was its principal defender. In December, the President sent a message to Congress recommending the removal of the public funds from the National Bank to certain State banks. Congress refused to remove the funds.