Having failed to win an appointment to Jackson's initial cabinet, as he had hoped, McLane nevertheless resigned from the Senate on April 29, 1829. In doing so, he completely cut his ties to the Claytons and the dominant political faction in the state. With little hope of reelection to the U.S. Senate or any future in Delaware politics, McLane counted on the new president to reward all of his considerable hopes with a prestigious position. However, a former Federalist from an inconsequential opposition state would have to wait until Jackson met other obligations. In October 1829, McLane reluctantly accepted an appointment as
Envoy Extraordinary and Minister Plenipotentiary to the United Kingdom, which had been arranged by his friend Martin Van Buren, now U.S. Secretary of State. McLane was instructed to inform the English that his appointment signaled a break from the John Quincy Adams administration, and that issues of dispute under the Adams Administration would no longer be issues in a Jackson administration. His main assignment was to open up trade between the United States and the British West Indies. In this effort he was well received by
Lord Aberdeen, the Foreign Secretary, and successfully accomplished his mission. During his tenure, his personal secretary was
Washington Irving, who was thereafter a close and loyal family friend. portrait of McLane as Secretary of the Treasury Two years later, McLane finally received the cabinet appointment he had so longed for. When Jackson decided he needed to purge his cabinet of supporters of U.S. Senator
John C. Calhoun, Van Buren was able to convince the president to appoint McLane to be the Secretary of the Treasury. McLane returned from England and served as Treasury Secretary from August 8, 1831, to May 28, 1833. The major issues confronting McLane in this new role were the tariff rates and the status of the
Second Bank of the United States. When McLane entered Jackson's cabinet, he immediately assumed a position of leadership. Articulate, persuasive and energetic, he had mastered the issues under debate and was confident he could lead the others in the administration, including the President. Recognizing there was a difference of opinion with Jackson over the Bank, he sought to work out a plan with the bank president,
Nicholas Biddle, to provide for the upcoming renewal of the bank's charter in return for the accomplishment of a key objective of the President, the retirement of the national debt. On December 7, 1831, he proposed a sweeping plan to accomplish that and more. Acclaimed for its Hamiltonian creativity, McLane had taken the initiative on the administration's agenda, and was acting very much in the role of a Prime Minister. With enough time he was certain Jackson would soften his position and consent to the approach. Events conspired to frustrate the plan, however. First of all, Attorney General
Roger B. Taney sought to convince Jackson that McLane's plan was really a new packaging of the old Federalist program and in contradiction with Jackson's own past positions. At the time Jackson was somewhat flexible on the issue, and McLane wanted to postpone the decision until after the
presidential election of 1832. But Henry Clay decided that renewal of the bank charter was an issue he could use to defeat Jackson and convinced bank president Biddle to press for an immediate re-charter. By itself, this crystallized Jackson's opposition to re-chartering, which he vetoed when passed by the Congress. This caused him to view his eventual victory in the presidential election as a popular endorsement of his bank policy. Liking McLane personally and unwilling to make more controversial Cabinet changes so quickly, Jackson removed the bank issue from McLane's purview. However, when McLane refused to remove the governments deposits from the Second Bank of the United States, Jackson had to replace him with someone that would, and offered McLane the prestigious U. S. Secretary of State instead. As his replacement, Jackson settled on
William J. Duane, a man as unwilling as McLane to withdraw the deposits. The appointment was a great embarrassment to Jackson, and many blamed McLane for urging it. While all this was going on, McLane negotiated what seemed to be a satisfactory tariff bill, but when South Carolina continued to object and triggered the
Nullification Crisis, McLane prepared the important
Force Bill of 1833 to provide for the tariff's enforcement. By shuffling his cabinet, Jackson hoped to keep the talented McLane in his service by removing from him the obligation to implement his planned permanent destruction of the Second Bank of the United States. Appointed U.S. Secretary of State in a recess appointment, McLane served from May 29, 1833, until June 30, 1834. He quickly managed the first major reorganization of the department, by establishing seven new bureaus. He also managed a dispute with France, over what were known as the "Spoliation Claims". In 1832 France had agreed to reimburse the United States for certain shipping losses incurred during the Napoleonic Wars. However, successive French governments had failed to appropriate the funds required, all the while maintaining their desire to do so. Jackson was impatient to resolve the issue and worked with McLane to develop a hard line policy, confronting the French. Martin Van Buren was now Vice President and felt otherwise. Without consulting McLane, he intervened directly and convinced Jackson to give the French more time. McLane was furious with his old mentor for this intervention, and resigned his position, recognizing his apparent lack of authority in a direct area of responsibility. The incident also ended his friendship with Van Buren, and they never spoke again. ==Canal and railroad businesses==