1847 – The Independent Treasury Act comes into force

James Knox Polk was the eleventh President of the USA. In 1846, he approved a law restoring the Independent Treasury System, under which government funds were held in the Treasury and not in banks or other financial institutions.

This established independent treasury deposit offices, separate from private or state banks, to receive all government funds. The money belonging to the treasury could thus be separated from the market, ensuring that neither could influence the other. Unfortunately, that turned out not to be how it worked in practice, and the Independent Treasury System was eventually discontinued in 1921.

Referenced in:
James K. Polk – They Might Be Giants