What was the deposit act of 1836

And be is further enacted, That the said banks, before they shall be employed as the depositories of the public money, shall agree to receive the same, upon the following terms and conditions, to wit:.

First Each bank shall furnish to the Secretary of the Treasury, from time to time, as often as he may require, not exceeding once a week; statements setting forth its condition and business. And the said banks shall furnish to the Secretary of the Treasury, and to the Treasurer of the United States, a weekly statement of the condition of his account upon their books.

And the Secretary of the Treasury shall have the right, by himself, or an agent appointed for that purposes to inspect such general accounts in the books of the bank, as shall relate to the said statements: Provided, That this shall not be construed to imply a right of inspecting the account of any private individual or individuals smith the bank.

To credit as specie, all sums deposited therein to the credit of the Treasurer of the United States, and to pay all checks, warrants, or drafts, drawn on such deposited in specie if required by the holder thereof.

To give, whenever required by the Secretary of the Treasury, the necessary facilities for transferring the public funds from place to place, within the United States, and the Territories thereof, and for distributing the same in payment of the public creditors, without charging commissions or claiming allowance on account of difference of exchange.

No one expected the repayment of the loans. The influx of federal monies to the states further stimulated an overheated economy in and early The panic of occurred because of overspeculation in western lands, poor banking procedures, and a decline in farm prices, all of which the distribution system which called for the distribution of surplus funds to the states further compounded.

Americans abandoned the provisions of the act in when Congress passed the protectionist Tariff of , which greatly slashed federal revenues. Next post: Disease. Previous post: Divorce.