By this plan the government kept its money of all kinds in various depositories (or sub-treasuries) in charge of public officials.

While from 1792 to 1836 almost continuously a central banking system was in operation, other banks, organized under state charters, were steadily increasing in number.

They received deposits, issued bank notes under state laws, and cared for local commercial needs.

The abolition of the central national bank in 1836 left to the various state banks for twenty seven years all the banking functions of the country.

The banks of some states (notably those of New England and New York), under careful regulation and held to strict standards by public sentiment, for the most part maintained a high credit; but many banks, under lax laws and regulations, were guilty of great abuses of credit and of downright dishonest practices.