After the crisis of 1837 many projects were advanced to substitute for the banks some other form of financial institution as public depositories. Two national banks had failed for political reasons, and losses had been sustained by the Treasury during the intervening periods, 1812-1816 and 1832-1836, when it had used the state banks. After a long legislative struggle an independent treasury was created in 1840, the law having a "specie clause" to the effect that the government would accept only specie in payments to itself. The Whigs in 1842 repealed the Independent Treasury Act and attempted in vain to establish a national bank. The Democrats in 1846 re-established the Independent Treasury by legislation which permitted only specie and treasury notes to be received by the government, and public funds to be kept only in the Treasury, sub-treasuries, the mints, and the custom-houses. The Independent Treasury system worked fairly well during the period before the Civil War. The inauguration of the system was plainly forced by the abuses and failure of the banking system of the day, and was a protest both against the central national bank and the state bank systems. Before the Civil War the state banks had increased in number from 691 in 1843, to 1,601 in 1861; in circulation from $59,000,-000, to $202,000,000; and in deposits from $56,000,000, to $ 257,000,000. Some states had developed a body of sound banking laws and methods of supervising their banks, thereby increasing their utility as commercial and public institutions.