Confusion regarding the Economic Panic of 1837?

Question

The President during the time, Martin Van Buren was under the notion that an independent treasury would alleviate the financial system by refusing inadequately managed state banks access to government funds, which they might have used irresponsibly if given chance.

Is this the same as a national bank? I'm confused.

And, what good does a national bank (during this time) do anyway? It provides better organization for a developing country (that's what I've gathered from reading), right? Is there anything else?

Thanks for your help.

Answer 1

Well step back and look at it... the answer is obvious and right there.

Evidently there was a problem with worrying about states squandering the funds. By creating a federal reserve that only the federal government had control of, the funds could be better managed, controlled and ultimately protected.