In the early 1830s, the United States experienced a brief period of expansion and a prosperous economy. Land sales, new taxes, such as the Tariff of 1833, and newly built railroads brought much money into government possession; Never before in the country's history had the government posted a surplus in its national bank. By 1835, the government was able to accumulate enough money to repay the national debt. Much of the country was satisfied with this newly accumulated wealth, but President Jackson, before leaving office in 1836, issued what is called the Specie Circular. Many local and state governments preferred to save coins, gold and silver, and use paper money to handle transactions. President Jackson, in his Specie Circular, declared that the Treasury was no longer permitted to accept paper money as payment for the sale of land and the like. Most, if not all, of the country didn't like this, and as a result, many banks restricted credit and stopped lending. The effects of Jackson's Specie Circular went into effect in 1837, when Martin van Buren became president. All the investors got scared and in 1837 they tried to withdraw all their money at once. Soon afterward, unemployment and riots occurred in many cities, and continued railroad expansion ceased. The impact of the panic was profound. The entire nation was struck by panic, especially in Connecticut, New Jersey, and Delaware, which experienced the greatest stress in their mercantile districts. New York alone reported a loss of nearly $100,000,000 in two months. However, the South suffered even more than the East. The panic caused a surge of interest in various crops in Virginia, North Carolina, and the South... midway through the paper... and Buren declared that he would keep Jackson's Circular Species. Within a week, on May 10, the Panic of 1837 broke out in New York with banks refusing to redeem for cash. It turned out that none of the banks had cash available. Van Buren and his successor, President William Henry Harrison, were unable to resolve the Depression. On June 8, 1840, the Senate passed a bill providing for the repeal of the Independent Treasury Act. The bill passed the House and was signed by newly elected Whig President Tyler. Although the victorious Whigs repealed the Independent Treasury in 1841, they were unable to replace it with a national bank. Revived in 1846 by a new Democratic administration, the independent Treasury remained in operation until the creation of the Federal Reserve System in 1913.