On May 10, 1837, the New York banks suspended, Mr.
Gallatin's institution being of course dragged down with the rest.

It is idle to suppose that any single bank can hold out against a general suspension.

It may liquidate or become a bank of deposits, but it cannot maintain its relations with its sister institutions except on a basis of common accord.
A general suspension followed.

Mr.Woodbury proved himself equal to the emergency, and recommended a plan of "keeping the public money under new legislative provisions without using banks at all as fiscal agents." This was the beginning of the sub-treasury system, a new departure in treasury management, and a further evolution in American finance.

It still remains, and will no doubt be permanent.