After the removal of the public funds from the big bank and its branches, the state banks were used as government depositories and fiscal agents. This did not work well, however, and after the panic of 1837 when most of these banks again suspended, the Government determined to keep the public funds in its own possession. Accordingly a law was passed in 1840 establishing the independent treasury system. In 1841, however, the Whigs came into power and repealed the law. The Whigs sought to establish a national bank again, but this was defeated by the veto of President Tyler. When the Democrats gained control of Congress once more they reestablished the independent treasury system in 1846, and from that time until the Civil War the Government made its collections and disbursements entirely in specie and kept its funds in the Treasury and its branches, called sub-treasuries. Important changes were made in this system during and after the war, bringing the Treasury into close relations again with the banking and credit system of the country. It has proved clumsy and as a general thing has been an obstacle rather than an aid to the development of sound banking. Under the Federal Reserve system, however, by which the reserve banks become government depositories and fiscal agents, the operations of the independent treasury system will be greatly curtailed.