Finally

in 1840, an act was pa ed making the government the actual custodian of its own moneys. Vaults and safes were provided for the Treasury at Washington, Sub-Treasuries were established in several of the larger cities and mints and branch mints were made places of deposit. The law was repealed in 1841 and reenacted in 1846. In the interim the funds were handled under the independent Treasury systein without the authority of law. From 1846 the system was exclusively in operation until 1863 when the national banking act was pa ed. This law did not change the principle of the system, which is still in operation, but modified it to the extent that national banks could become depositories of public funds upon supplying United States bonds as security in the full amount of the money deposited with them. The system has been entirely succe ful so far as safety is concerned, but the locking up of such large amounts of money as the government always keeps on hand has been a distinct economic lo and in times of monetary stringency an enor- ‘* mous Treasury surplus has been an actual menace to the busine of the country. 264