1838 Martin Van Buren - The need for a Sub Treasury

After Jackson shutdown the Second National Bank of the United States, the U.S. treasury was transferred to state banks. The safety of these government funds was of primary concern to both the President and congress. President Van Buren knew that if safeguards were not in place, congress would move to dismantle the entire depository system and open the door to re-chartering a national bank. The president opposed a national bank, and thus advocated an Independent treasury, also known as "Sub Treasury". This would be a sub-branch of the federal government to collect, store and disburse public revenue. Ultimately this would be a very hard sell to congress and to the American people.

But, in 1838, Martin Van Buren shared with congress his dire warnings of letting private banking get intermingled with the U.S. treasury. The president explained that when private individuals have influence over the depository system, then it leads to corruption and oppressive taxes on the people to the benefit and profit of a few.

"The same wide-spreading influence impeded also the resources of the Government, curtailed its useful operations, embarrassed the fulfillment of its obligations, and seriously interfered with the execution of the laws. Large appropriations and oppressive taxes are the natural consequences of such a connection, since they increase the profits of those who are allowed to use the public funds, and make it their interest that money should be accumulated and expenditures multiplied. It is thus that a concentrated money power is tempted to become an active agent in political affairs; and all past experience has shown on which side that influence will be arrayed. We deceive ourselves if we suppose that, it will ever be found asserting and supporting the rights of the community at large in opposition to the claims of the few."

http://www.presidency.ucsb.edu/ws/index.php?pid=29480
http://www.presidentprofiles.com/Washington-Johnson/Martin-Van-Buren-The-independent-treasury.html
http://loc.harpweek.com/LCPoliticalCartoons/IndexDisplayCartoonLarge.asp?SourceIndex=People&IndexText=Slamm%2C+Levi&UniqueID=32&Year=1840