subtreasury

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subtreasury.

After President Andrew JacksonJackson, Andrew,
1767–1845, 7th President of the United States (1829–37), b. Waxhaw settlement on the border of South Carolina and North Carolina (both states claim him). Early Career

A child of the backwoods, he was left an orphan at 14.
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 vetoed (July 10, 1832) the bill to recharter the Second Bank of the United StatesBank of the United States,
name for two national banks established by the U.S. Congress to serve as government fiscal agents and as depositories for federal funds; the first bank was in existence from 1791 to 1811 and the second from 1816 to 1836.
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, the deposits were removed and placed in state banks that came to be called Jackson's "pets." This process was accomplished by the President only with great difficulty, for there was grave doubt as to its constitutionality (see McLane, LouisMcLane, Louis,
1786–1857, American statesman, b. Smyrna, Del. He served in the U.S. House of Representatives (1817–27) and in the Senate (1827–29), resigning to become minister to England (1829–31).
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; Duane, William JohnDuane, William John,
1780–1865, U.S. Secretary of Treasury (June–Sept., 1833), b. Clonmel, Ireland. He emigrated (1796) to Philadelphia with his father, William Duane (1760–1835), and assisted him in publishing the Aurora until 1806.
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; Taney, Roger BrookeTaney, Roger Brooke
, 1777–1864, American jurist, 5th chief justice of the United States (1836–64), b. Calvert co., Md., grad. Dickinson College, 1795. Early Life

Taney was born of a wealthy slave-owning family of tobacco farmers.
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). The situation remained somewhat in suspension and debate until a subtreasury system, as such, was established (July 4, 1840) with the act to set up the Independent Treasury SystemIndependent Treasury System,
in U.S. history, system for the retaining of government funds in the Treasury and its subtreasuries independently of the national banking and financial systems. In one form or another, it existed from the 1840s to 1921.
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. This act, never strictly carried out, was repealed (Aug. 13, 1841) by the Whigs. In 1846 the Independent Treasury was finally and rigidly established and with it the subtreasury system. Public funds were not to be deposited in any bank but either kept in coin in the Treasury or subtreasuries or retained by the public officers receiving them until paid out on proper authority. No banknotes were to be received in payments to the government. The subtreasuries were maintained, chiefly through political influence, until the passage of the General Appropriation Act (May 29, 1920) and the transfer of their functions to the Treasury, the mints and assay offices, and the Federal Reserve banks, which was completed in 1921.
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