Louis McLane, secretary of the treasury, on December 5, 1832, in his report on the finances, said that the dividends derived from the bank shares held by the United States were more than was required to pay the interest, and that the _debt_ might therefore be considered as substantially extinguished after January 1, 1833.
On December 3, 1833, Roger B.Taney, secretary of the treasury, reported to Congress that he had directed the removal of the deposits of the government from the Bank of the United States and placed them in banks of his own selection.

He gave a number of reasons for this extraordinary exercise of the power which he obtained by his appointment on September 23, 1833.

He received his reward in June, 1834, being then transferred by President Jackson to the seat of chief justice of the Supreme Court.
In his annual report Taney named, among his elaborate reasons for the removal, that the bank had used its money for electioneering purposes, and that he "had always regarded the result of the last election of President of the United States as the declaration of a majority of the people that the charter ought not to be renewed." He further expressed the opinion "that a corporation of that description was not necessary either for the fiscal operations of the government or the general convenience of the people." It mattered little to him that Mr.Gallatin had only recently pointed out that from the year 1791 the operations of the Treasury had, without interruption, been carried on through the medium of banks; during the years 1811 to 1814, by the state banks, with a result which no one had as yet forgotten; before and since that brief interval through the Bank of the United States.

Enough for Taney, that it was the will of his imperious master, 'the pugnacious animal,' as Gallatin aptly termed him.
In October, 1834, Taney's successor in the Treasury, Levi Woodbury, gave notice that the remaining debt, unredeemed after January 1, 1835, would cease to bear interest and be promptly paid on application to the commissioners of loans in the several States.

On December 8, 1835, Mr.
Woodbury reported "an unprecedented spectacle presented to the world of a government virtually without any debts and without any direct taxation." The surplus revenues, about thirty-seven and a half millions of dollars, had by an act of the previous session been distributed among the several States.