Nations first economic depression. Banks loaned too much money out for Western expansion and they began to fail one by one. Hardship was acute and widespread and hundreds of banks collapsed. Martin Van Buren (who was president at the time) tried to "divorce" the government from banking altogether. This idea was not highly supported but the Independent Treasury Bill passed congress in 1840. Although the Whigs repealed it the next year, the scheme was reenacted by the democrats in 1846.