In 1837, Martin Van Buren - the successor supported by President Jackson - took over the White House. Buren's biggest challenge is how to overcome the risk of a serious crisis due to the tightening of the money supply by the International Bank.
His pioneering strategy is to build an "independent financial system" (Independent Treasury System), withdraw all currency controlled by the Ministry of Finance from the private banking system, and then deposit it into his system in The financial. Historians call this move "the divorce between finance and banking."
The origin of the "independent financial system" was when President Jackson vetoed the extension of the Second Bank's business term and ordered the withdrawal of all government funds from this banking system. , transferred to deposit in state banks.
Unexpectedly, bankers used government money as reserves, then issued credit in large quantities for speculation. This was another cause of the "crisis of 1837". The source of government money proposed by Martin Van Buren must be released from the financial system to protect the government's capital while also considering the possibility of banks using taxpayer money to issue credit at reasonable rates. Large quantities create imbalance in the economy.
