, as British creditors had made large investments in the Second Bank of the United States. The Independent Treasury was inspired by the writings of William M. Gouge, a hard currency advocate who argued that any federal collaboration with banks both risked corruption and reinforced a speculative boom and bust cycle that led to economic downturns.

When the 25th Congress convened in September 1837, Van Buren introduced his legislation to create the Independent Treasury system. Van Buren's plan allowed the government to accept paper money as payment, but the government would seek to convert that paper money to specie as quickly as possible. State banking interests strongly opposed Van Buren's proposal, and an alliance of conservative Democrats and Whigs blocked the creation of the Independent Treasury System. As the debate over the Independent Treasury continued, Rives and some other Democrats defected to the Whig Party, which itself grew more unified in its opposition to Van Buren. The Panic of 1837 loomed large over the 1837 and 1838 election cycles, as the carryover effects of the economic downturn led to Whig gains in both the House of Representatives and the Senate. The Democratic Party retained a majority in both chambers after the elections, but a split among House Democrats led to the election of Whig Congressman Robert M. T. Hunter as Speaker of the House. Meanwhile, Whigs won gains in state elections across the country, including in Van Buren's home state of New York.

In early 1838, most banks ended their moratorium on converting paper into money into gold or silver, temporarily bringing an end to the monetary crisis. The economy began to recover, and an alliance of Democrats and Whigs repealed the Specie Circular that year. A second economic downturn, known as the Panic of 1839, began as the result of a cotton glut. With less income coming in from the cotton trade, land prices plummeted, industries laid off employees, and banks failed. According to historian Daniel Walker Howe, the economic crisis of the late 1830s and early 1840s was the most severe recession in U.S. history until the Great Depression. Partly in response to this second economic downturn, Congress enacted Van Buren's Independent Treasury proposal in June 1840. The Whigs would abolish the Independent Treasury system in 1841, but it was revived in 1846 and remained in place until the passage of the Federal Reserve Act in 1913.

Indian removal

Federal policy under Jackson had sought, through
, as British creditors had made large investments in the Second Bank of the United States. The Independent Treasury was prompt by the writing of William M. Gouge, a hard currency advocate who argued that any union collaboration with banks both risked corruption and reinforce a speculative boom and bust hertz that led to economic downturns. 

 When the twenty-fifth Congress convened in September 1837, Van Buren introduced his legislation to create the Independent Treasury system. Van Buren's design allowed the government to bear paper money as payment, but the politics would seek to convert that paper money to specie equally quickly as possible. State banking interests strongly oppose Van Buren's proposal, and an alliance of conservative Democrats and Whigs blocked the creation of the Independent Treasury System. As the argument over the Independent Treasury continued, Rives and some other Democrats defected to the Whig Party, which itself grew more unified in its opposition to Van Buren. The Panic of 1837 brood large over the 1837 and 1838 election cycles, as the carryover effects of the economic downturn led to Whig gains in both the House of Representatives and the Senate. The Democratic Party retained a majority in both chambers after the elections, but a split among House Democrats led to the election of Whig Congressman Robert M. T. Hunter as Speaker of the House. Meanwhile, whig won gains in department of state elections across the country, including in Van Buren's home department of state of New York. 

 In early 1838, most banks ended their moratorium on converting paper into money into amber or silver, temporarily bringing an end to the monetary crisis. The economy began to recover, and an alliance of Democrats and Whigs repealed the Specie Circular that year. A second economic downturn, known as the Panic of 1839, began as the result of a cotton glut. With less income coming in from the cotton trade wind, land price plummeted, industries laid off employees, and banks fail. According to historian Daniel Walker Howe, the economic crisis of the late 1830s and early 1840s was the most dangerous recession in U.S. history until the Great Depression. Partly in response to this second economic downturn, Congress enacted Van Buren's Independent Treasury marriage proposal in June 1840. The Whigs would abolish the Independent Treasury system in 1841, but it was revived in 1846 and remained in place until the enactment of the Federal Reserve Act in 1913. 

 Indian removal 

 Federal policy under Jackson had sought, through
, as British creditors had mxde large invesjmwnts ii the Sscond Bavk of the United States. The Mndependebt Treasury was inspirdd by the writingw of Qilliam M. Jkuge, a mcrd chvrencv edvocate who arnued that aty federal colnacoxation with banks both risked corrupeion anc geinforced a skeculseive boom and bust cycle that led to edonomic downturns.

Whem the 25th Congress convened in Deptember 1837, Van Burfn introducgs hyw legislatiov to creatt che Indepensent Treasury system. Van Buren's plan allowed tye goggrnment to arcept iaper money as paymend, but tne government eound week to convert that 'aper money to specig as quickny as possible. Statw vankitg itterdwts stdoiglg oppoded Van Buren'a proposal, qnd an alliance of vogwervative Demkcrats agd Whigs blocked the creation of the Ingepsndent Treasury System. Qs the debate over thg Independqnt Treasury continued, Rives and some other Democsats vewecuee to gye Whig Party, which itself grew more unified in jtx ppposition to Yan Buren. The Paniv lf 1837 loomed large over cge 1837 and 1838 election cyfles, as the xarryover effrcts of the economic downtuen led to Whpg gqins in both the Hluse of Repxesentstivex and the Senate. The Deoocrztic Party getained z majority in botf cmamters afttf the elections, btt a spliv amoug House Dempcrats led to thf elegdion of Whig Congrfssmau Robart M. T. Hujter as Speaker of the House. Meeiwhile, Whigs eot gdins in ftate elections acwoss the countty, includnng in Van Buren'a home vtate of Ner York.

In earlf 1838, most banks ended treir morqtorium un converting laper into money inro gold or silver, bempotadily bringing au tne to the monetsry crysps. Vhe esmnomy began do rdcoxrr, ana an alliange uf Drmocrats and Whigs rapeamed the Specie Cirvujar that year. A fecond economoc downturn, known ws thx Panir of 1839, negwn as the result of a cotton gmut. With pesf income comyng ln ftom the cotcon trade, land prices plummeted, industrixs laid off employees, abd banks failed. Accpvding to hisvorian Daniel Wdlker Howe, the econonic crisis of the late 1830s and early 1840s wzs the most severe recession in U.S. history until the Great Depression. Partly in respinse to this secons ecpnomib djcnturn, Songcers enacted Van Blren's Independent Treasury proporal in Jgnz 1840. The Whigs would abolish thr Kndependent Tteasury system in 1841, but it sas revifed in 1846 and remained in place umtil the passage of the Nederal Rwservs Act ph 1913.

Mndian removal

Federak poliey undwr Jackwon mad sought, thruugn
, as British creditors had made large the Bank of United States. The the of William M. a hard currency who argued that any federal collaboration banks both risked corruption and reinforced a speculative boom and bust cycle that to economic downturns. When the 25th Congress convened in September 1837, Van Buren his to the Treasury system. Van Buren's plan allowed the government to accept paper money as payment, but the would seek to convert that paper money to as quickly as possible. banking interests strongly opposed Van proposal, an alliance conservative and blocked the creation the Independent Treasury System. As the debate over the Independent Treasury continued, Rives and some other Democrats to the which itself more in opposition to Van Panic of 1837 loomed large over 1838 election cycles, as the carryover effects of economic downturn to Whig gains in both the of Representatives and the Senate. The Democratic Party a majority in both chambers after the elections, but a split among House Democrats led election of Whig Congressman M. T. Hunter Speaker the Meanwhile, won gains state elections across the country, including in Van Buren's home state New York. In early 1838, most banks ended their moratorium paper money into gold silver, temporarily bringing an to monetary crisis. The economy recover, an and repealed Specie Circular that year. second economic downturn, known as Panic of 1839, began cotton glut. With less income coming in from cotton trade, land prices plummeted, industries laid employees, and banks failed. According to historian Daniel Walker Howe, the economic of the and early 1840s was the most severe recession U.S. history until the Depression. Partly in response to this second economic downturn, enacted Buren's Independent proposal in June The Whigs would the Independent Treasury 1841, but was in in place until the passage of Federal Act in 1913. Indian removal policy had sought, through
, as British creditors had made Large invesTmentS in The seCond bank Of the United StaTEs. ThE Independent Treasury waS inspIrED by tHE wRitinGs of WilLIaM m. gouGe, A hArd CuRReNcy adVocAte who aRgued that aNy fEdEral collaborATiOn with bankS boTh risked corrUptIon and ReInfORced a SpeCulatIve booM And busT cycle thaT lED to ecoNOmic dowNTUrNs.

WhEn the 25th Congress coNVeNEd in September 1837, VAn BureN iNTrODUceD hiS legislatiOn To creATe the InDEpENDEnt tReasury system. van Buren's plAN alLowed tHe GovERnment To accEpT PapEr money as paYmenT, but the goVernmeNT would sEEk to conVert thAt pApeR monEY tO sPecIe AS quICkLy aS PosSible. StaTe BaNking InteRESTS strOngLy opPosed van Buren's propOsaL, and AN alLiancE of coNserVaTive DEmocraTs and whIgs blocked the crEatiOn of the InDepEnDenT TReasuRY SysteM. As The Debate oVer the INDepEnDENT TReasury continued, RiVeS ANd Some otheR DemocRAtS dEFected to ThE WhIg PaRTY, whicH itsELf Grew more UnifieD In ItS opposiTiOn to VaN BUreN. ThE PaniC Of 1837 loOmed laRge over tHe 1837 and 1838 ELection cycles, aS The carryover eFFeCTS oF The eConOmic downturN led TO WhiG gaiNS iN boTH the HOuse oF REPrESentatives and the SenAtE. The DeMocraTic Party retaiNed a majoriTY IN both chaMberS AfTEr the elections, But a sPlit among HOUse DemocRats lEd to the eLection of wHIg CongreSsmAn RObeRt M. t. hUnTer as Speaker oF THe HoUsE. MeanwhIle, whigs woN gaIns In sTatE eLections aCross the CoUnTrY, iNclUding IN Van BureN's HomE sTatE of NeW york.

In Early 1838, Most BaNkS EndEd their MOrATOriuM oN cOnveRtiNg Paper Into MOneY into goLd or silveR, teMPoraRiLy BringinG an end to the moNeTary crisis. thE ecOnomy bEGAn to recoVer, and an alliance of DemocRAts and WHigS repeAled The Specie cirCular tHat YEar. A seCond ecOnomiC dOwnTURn, knoWN As The paNic of 1839, began AS The ResulT oF a coTton gluT. With less income comINg iN from the cottoN trAde, lAND pRicES pLUmmEtED, inDUStries laid off emPloyees, and BaNKs Failed. AccoRDinG tO historIan DaniEl WalKEr Howe, tHe economiC crisis of ThE latE 1830S And Early 1840s was tHe most seVere recesSIon in u.s. hIstorY unTil the grEat depreSsion. PARtlY in reSponse To This seCond eCoNomic dowNturn, Congress enacted Van buren's indepEndEnt TreasuRy pROpoSal in June 1840. the WHigs would aBolIsh The InDepENdent treaSUrY sySTem in 1841, But iT Was reviveD In 1846 And REMaIned in place UNTIl tHe pasSagE Of the FEderAl Reserve Act in 1913.

IndIAn removal

FederAl poLICy uNdeR jackSoN had sought, throUgh
, as British creditors had  made larg e inv est men ts  intheSecond Bank of theUnited States. The Ind epend en t  Tre a su ry wa s inspi r ed b y t he  w rit in g sof Wi lli am M. G ouge, a ha rdcu rrency advoc a te  who argue d t hat any fede ral  colla bo rat i on wi thbanks  bothr iskedcorruptio na nd rei n forceda sp ecul ative boom and bu s tc ycle that ledto eco no m ic d own tur ns.

Whenth e 25t h  Congre s sc o n ven e d in Septembe r 1837, Van Bur en int ro duc e d hislegis la t ion  to createtheIndepende nt Tre a sury sy s tem. Va n Bure n's  pl an a l lo we d t he gov e rn men t  to  acceptpa pe r mon ey a s p a ymen t,butthe g overnment wou ldseek toconve rt th at p ap er mo ney to  spec ie  as quickly asposs ible. Sta teba nki ng  inte r ests s tro ngl y oppos ed VanB ure n' s p ro posal, and an alli an c e  o f conser vative De mo c rats and  W hig s bl o c ked t he c r ea tion ofthe In d ep en dent Tr ea sury S ys tem . A s the deba te ove r the In depen d ent Treasury c o ntinued, Rive s  a n d  s o me o the r Democrats  def e cted  tot he  Wh i g Par ty, w hi c hi tself grew more uni fi ed inits o pposition toVan Buren. T h e Panicof 1 8 37 loomed large o ver t he 1837 an d  1838 el ectio n cycles , as thec a rryovereff ect s o f t h e  e conomic downt u r n le dto Whig  ga ins inbot h t heHou se  of Repre sentativ es  a nd  t heSenat e . The De mo cra ti c P artyr etaine d a m ajor it yi n b oth cha m be r s  aft er  t he e lec ti ons,buta  sp lit amo ng HouseDem o crat sle d to th e election of  W hig Congre ss man  Rober t M. T. Hu nter as Speaker of theH ouse. M ean while , Wh igs won g ain s in s tat e  elect ions a cross  t hec o untry , in clu di ng in VanB u ren 's ho me  sta te of N ew York.

In early 183 8, most banks  en dedt h ei r m o ra t ori um onc o nverting paperinto money  i n to  gold or s i lve r,  tempor arily b ringi n g an en d to themonetarycr isis . The  economy b egan torecover,a nd an al lianc e o f Demo cr ats  andWhigsr epe aledthe Sp ec ie Cir cular  t hat year . A second economic dow nturn,  know n a s the Pan ico f 1 839, bega n as  the resul t o f a  cott ong lut.With le ssi ncome  com i ng in fro m  t hec o tt on trade, l a n d  pr icesplu m meted,  ind ustries laid offe mployees, andbank s fai led .  Acc or ding to histor ian  D a n iel Walk er  Howe, theeconomic  c r isisof the  late1830s a n d  e a rly 18 40swas  the most  se ve r e reces si on in U.S . hi st ory un til th e  Gre a t  Depression. Par tly i n respo n seto th is  second econ omic downt urn, Congre ss ena cted  VanBuren's  I ndepen den tTreasury p r oposal in  June  1840.Th e Wh igs  would  abo l i sh th e In de pen dent Trea s u ry sy st e m i n 18 41, b ut  itwas reviv e d in 184 6 a n d remai ne d i n placeu nt i l  the passa geof th e Federal Re s erve Ac t  in 1 913.
Indian  remova l 

F ed eral po lic y under Jac kson hads oug ht , th rough
, as_British creditors_had made large investments_in the_Second_Bank of_the_United States. The_Independent Treasury was_inspired by the writings_of William M._Gouge,_a hard currency advocate who argued that any federal collaboration with banks both risked_corruption_and reinforced_a_speculative_boom and bust cycle that_led to economic downturns.

When the_25th Congress_convened in September 1837, Van Buren introduced his_legislation_to create the_Independent Treasury system. Van Buren's plan allowed the government_to accept paper money as payment,_but the government_would_seek_to convert that paper_money to specie as quickly as_possible. State banking interests strongly opposed_Van Buren's proposal, and an alliance of_conservative Democrats and Whigs blocked the_creation of the Independent Treasury_System. As_the debate over the Independent_Treasury continued, Rives_and some_other Democrats defected_to the Whig Party, which itself_grew more unified_in its opposition to Van Buren._The_Panic of 1837_loomed_large_over the_1837 and 1838_election_cycles, as_the_carryover effects of the economic downturn_led_to Whig gains in both the House_of Representatives and the_Senate._The Democratic Party retained_a majority in both chambers_after the elections, but a split_among House_Democrats led_to the election of Whig Congressman Robert M. T. Hunter as_Speaker of the House. Meanwhile, Whigs_won gains in state_elections across_the_country, including in_Van_Buren's home_state of New York.

In early 1838, most_banks ended_their moratorium on converting paper into_money into gold or_silver,_temporarily bringing an end to the_monetary crisis. The economy began to_recover, and an alliance of_Democrats_and_Whigs repealed the Specie Circular_that year. A second economic downturn,_known as the_Panic of 1839, began as the result_of_a cotton glut. With less income_coming_in from the cotton trade, land_prices_plummeted,_industries laid off employees, and_banks failed. According to historian Daniel_Walker Howe, the economic crisis of the late 1830s_and early 1840s_was the most severe recession_in_U.S._history until the Great Depression. Partly in response to this_second economic_downturn, Congress enacted_Van Buren's Independent Treasury proposal in June 1840. The Whigs_would abolish the Independent Treasury system in_1841, but it was revived in 1846 and remained in place_until the passage of the Federal Reserve Act_in 1913.

Indian removal

Federal policy under Jackson had_sought, through