In 1834, President Andrew Jackson defunded the Second Bank of the United States. The move was in response Jackson’s belief that a financial institution as large as the Second Bank of the United States was in too precarious a position as it could be manipulated to exploit the US financial system. The power of the central bank was delegated to hundreds of smaller banks, all of which would produce their own notes and give out loans. The system Jackson set into place would culminate in the Panic of 1837 and the first significant depression the United States has faced. The US would not see another centralized bank until the National Bank Act of 1864. During this extended period, bank notes were often worth less than face value, making silver and gold coinage, such as this 1834 half dollar, a much more attractive form of currency to possess.