diff --git a/electrum b/electrum
index 0056ccd81..e322331f5 100755
--- a/electrum
+++ b/electrum
@@ -107,9 +107,74 @@ def init_gui(config, network, plugins):
     return gui
 
 
+def run_non_RPC(config):
+    cmdname = config.get('cmd')
+
+    storage = WalletStorage(config.get_wallet_path())
+    if storage.file_exists:
+        sys.exit("Error: Remove the existing wallet first!")
+
+    def password_dialog():
+        return prompt_password("Password (hit return if you do not wish to encrypt your wallet):")
+
+    if cmdname == 'restore':
+        text = config.get('text')
+        password = password_dialog() if Wallet.is_seed(text) or Wallet.is_xprv(text) or Wallet.is_private_key(text) else None
+        try:
+            wallet = Wallet.from_text(text, password, storage)
+        except BaseException as e:
+            sys.exit(str(e))
+        if not config.get('offline'):
+            network = Network(config)
+            network.start()
+            wallet.start_threads(network)
+            print_msg("Recovering wallet...")
+            wallet.synchronize()
+            wallet.wait_until_synchronized()
+            msg = "Recovery successful" if wallet.is_found() else "Found no history for this wallet"
+        else:
+            msg = "This wallet was restored offline. It may contain more addresses than displayed."
+        print_msg(msg)
+
+    elif cmdname == 'create':
+        password = password_dialog()
+        wallet = Wallet(storage)
+        seed = wallet.make_seed()
+        wallet.add_seed(seed, password)
+        wallet.create_master_keys(password)
+        wallet.create_main_account(password)
+        wallet.synchronize()
+        print_msg("Your wallet generation seed is:\n\"%s\"" % seed)
+        print_msg("Please keep it in a safe place; if you lose it, you will not be able to restore your wallet.")
+
+    elif cmdname == 'deseed':
+        if not wallet.seed:
+            print_msg("Error: This wallet has no seed")
+        else:
+            ns = wallet.storage.path + '.seedless'
+            print_msg("Warning: you are going to create a seedless wallet'\nIt will be saved in '%s'" % ns)
+            if raw_input("Are you sure you want to continue? (y/n) ") in ['y', 'Y', 'yes']:
+                wallet.storage.path = ns
+                wallet.seed = ''
+                wallet.storage.put('seed', '')
+                wallet.use_encryption = False
+                wallet.storage.put('use_encryption', wallet.use_encryption)
+                for k in wallet.imported_keys.keys():
+                    wallet.imported_keys[k] = ''
+                wallet.storage.put('imported_keys', wallet.imported_keys)
+                print_msg("Done.")
+            else:
+                print_msg("Action canceled.")
+        wallet.storage.write()
+        sys.exit(0)
+
+    wallet.storage.write()
+    print_msg("Wallet saved in '%s'" % wallet.storage.path)
+    sys.exit(0)
 
-def init_cmdline(config):
 
+def init_cmdline(config_options):
+    config = SimpleConfig(config_options)
     cmdname = config.get('cmd')
     cmd = known_commands[cmdname]
 
@@ -130,58 +195,11 @@ def init_cmdline(config):
     # instanciate wallet for command-line
     storage = WalletStorage(config.get_wallet_path())
 
-    if cmd.name in ['create', 'restore']:
-        if storage.file_exists:
-            sys.exit("Error: Remove the existing wallet first!")
-
-        def password_dialog():
-            return prompt_password("Password (hit return if you do not wish to encrypt your wallet):")
-
-        if cmd.name == 'restore':
-            text = config.get('text')
-            password = password_dialog() if Wallet.is_seed(text) or Wallet.is_xprv(text) or Wallet.is_private_key(text) else None
-            try:
-                wallet = Wallet.from_text(text, password, storage)
-            except BaseException as e:
-                sys.exit(str(e))
-            if not config.get('offline'):
-                network = Network(config)
-                network.start()
-                wallet.start_threads(network)
-                print_msg("Recovering wallet...")
-                wallet.synchronize()
-                wallet.wait_until_synchronized()
-                msg = "Recovery successful" if wallet.is_found() else "Found no history for this wallet"
-            else:
-                msg = "This wallet was restored offline. It may contain more addresses than displayed."
-            print_msg(msg)
-
-        else:
-            password = password_dialog()
-            wallet = Wallet(storage)
-            seed = wallet.make_seed()
-            wallet.add_seed(seed, password)
-            wallet.create_master_keys(password)
-            wallet.create_main_account(password)
-            wallet.synchronize()
-            print_msg("Your wallet generation seed is:\n\"%s\"" % seed)
-            print_msg("Please keep it in a safe place; if you lose it, you will not be able to restore your wallet.")
-
-        wallet.storage.write()
-        print_msg("Wallet saved in '%s'" % wallet.storage.path)
-        sys.exit(0)
-
     if cmd.requires_wallet and not storage.file_exists:
         print_msg("Error: Wallet file not found.")
         print_msg("Type 'electrum create' to create a new wallet, or provide a path to a wallet with the -w option")
         sys.exit(0)
 
-    # create wallet instance
-    wallet = Wallet(storage) if cmd.requires_wallet else None
-
-    # notify plugins
-    always_hook('cmdline_load_wallet', wallet)
-
     # important warning
     if cmd.name in ['getprivatekeys']:
         print_stderr("WARNING: ALL your private keys are secret.")
@@ -189,7 +207,7 @@ def init_cmdline(config):
         print_stderr("In particular, DO NOT use 'redeem private key' services proposed by third parties.")
 
     # commands needing password
-    if cmd.requires_password and wallet.use_encryption:
+    if cmd.requires_password and storage.get('use_encryption'):
         if config.get('password'):
             password = config.get('password')
         else:
@@ -197,57 +215,48 @@ def init_cmdline(config):
             if not password:
                 print_msg("Error: Password required")
                 sys.exit(1)
-            # check password
-            try:
-                seed = wallet.check_password(password)
-            except InvalidPassword:
-                print_msg("Error: This password does not decode this wallet.")
-                sys.exit(1)
     else:
         password = None
 
-    # run the command
-    if cmd.name == 'deseed':
-        if not wallet.seed:
-            print_msg("Error: This wallet has no seed")
-        else:
-            ns = wallet.storage.path + '.seedless'
-            print_msg("Warning: you are going to create a seedless wallet'\nIt will be saved in '%s'" % ns)
-            if raw_input("Are you sure you want to continue? (y/n) ") in ['y', 'Y', 'yes']:
-                wallet.storage.path = ns
-                wallet.seed = ''
-                wallet.storage.put('seed', '')
-                wallet.use_encryption = False
-                wallet.storage.put('use_encryption', wallet.use_encryption)
-                for k in wallet.imported_keys.keys():
-                    wallet.imported_keys[k] = ''
-                wallet.storage.put('imported_keys', wallet.imported_keys)
-                print_msg("Done.")
-            else:
-                print_msg("Action canceled.")
-        wallet.storage.write()
-        sys.exit(0)
+    config_options['password'] = password
 
-    elif cmd.name == 'password':
+    if cmd.name == 'password':
         new_password = prompt_password('New password:')
-        wallet.update_password(password, new_password)
-        wallet.storage.write()
-        sys.exit(0)
+        config_options['new_password'] = new_password
 
-    return cmd, password, wallet
+    return cmd, password
 
 
-def run_offline_command(config, cmd, wallet, password):
+def run_offline_command(config, config_options):
+    cmdname = config.get('cmd')
+    cmd = known_commands[cmdname]
+    storage = WalletStorage(config.get_wallet_path())
+    wallet = Wallet(storage) if cmd.requires_wallet else None
+    # check password
+    if cmd.requires_password and storage.get('use_encryption'):
+        password = config_options.get('password')
+        try:
+            seed = wallet.check_password(password)
+        except InvalidPassword:
+            print_msg("Error: This password does not decode this wallet.")
+            sys.exit(1)
+    if cmd.requires_network:
+        print_stderr("Warning: running command offline")
+    # notify plugins
+    always_hook('cmdline_load_wallet', wallet)
     # arguments passed to function
     args = map(lambda x: config.get(x), cmd.params)
     # decode json arguments
     args = map(json_decode, args)
     # options
     args += map(lambda x: config.get(x), cmd.options)
-    cmd_runner = Commands(config, wallet, None)
-    cmd_runner.password = password
+    cmd_runner = Commands(config, wallet, None,
+                          password=config_options.get('password'),
+                          new_password=config_options.get('new_password'))
     func = getattr(cmd_runner, cmd.name)
     result = func(*args)
+    # save wallet
+    wallet.storage.write()
     return result
 
 
@@ -317,18 +326,21 @@ if __name__ == '__main__':
     gui_name = config.get('gui', 'qt') if cmd_name == 'gui' else 'cmdline'
     plugins = Plugins(config, is_bundle or is_local or is_android, gui_name)
 
-    # run command offline
+    # run non-RPC commands separately
+    if cmd_name in ['create', 'restore', 'deseed']:
+        run_non_RPC(config)
+        sys.exit(0)
+
+    # check if a daemon is running
+    server = get_daemon(config)
+
+    # if no daemon is running, run the command offline
     if cmd_name not in ['gui', 'daemon']:
-        cmd, password, wallet = init_cmdline(config)
-        if not (cmd.requires_network or cmd.requires_wallet) or config.get('offline'):
-            result = run_offline_command(config, cmd, wallet, password)
+        init_cmdline(config_options)
+        if server is None: #not (cmd.requires_network or cmd.requires_wallet) or config.get('offline'):
+            result = run_offline_command(config, config_options)
             print_msg(json_encode(result))
-            wallet.storage.write()
             sys.exit(0)
-        else:
-            config_options['password'] = password
-
-    server = get_daemon(config)
 
     # daemon is running
     if server is not None:
diff --git a/lib/commands.py b/lib/commands.py
index ed351baef..759519736 100644
--- a/lib/commands.py
+++ b/lib/commands.py
@@ -74,21 +74,22 @@ def command(s):
 
 class Commands:
 
-    def __init__(self, config, wallet, network, callback = None):
+    def __init__(self, config, wallet, network, callback = None, password=None, new_password=None):
         self.config = config
         self.wallet = wallet
         self.network = network
         self._callback = callback
-        self.password = None
+        self._password = password
+        self.new_password = new_password
         self.contacts = contacts.Contacts(self.config)
 
     def _run(self, method, args, password_getter):
         cmd = known_commands[method]
         if cmd.requires_password and self.wallet.use_encryption:
-            self.password = apply(password_getter,())
+            self._password = apply(password_getter,())
         f = getattr(self, method)
         result = f(*args)
-        self.password = None
+        self._password = None
         if self._callback:
             apply(self._callback, ())
         return result
@@ -120,7 +121,9 @@ class Commands:
     @command('wp')
     def password(self):
         """Change wallet password. """
-        raise BaseException('Not a JSON-RPC command')
+        self.wallet.update_password(self._password, self.new_password)
+        self.wallet.storage.write()
+        return {'password':self.wallet.use_encryption}
 
     @command('')
     def getconfig(self, key):
@@ -200,7 +203,7 @@ class Commands:
         outputs = map(lambda x: ('address', x[0], int(COIN*x[1])), outputs.items())
         tx = Transaction.from_io(tx_inputs, outputs)
         if not unsigned:
-            self.wallet.sign_transaction(tx, self.password)
+            self.wallet.sign_transaction(tx, self._password)
         return tx.as_dict()
 
     @command('wp')
@@ -212,7 +215,7 @@ class Commands:
             pubkey = bitcoin.public_key_from_private_key(privkey)
             t.sign({pubkey:privkey})
         else:
-            self.wallet.sign_transaction(t, self.password)
+            self.wallet.sign_transaction(t, self._password)
         return t.as_dict()
 
     @command('')
@@ -250,7 +253,7 @@ class Commands:
         """Get private keys of addresses. You may pass a single wallet address, or a list of wallet addresses."""
         is_list = type(address) is list
         domain = address if is_list else [address]
-        out = [self.wallet.get_private_key(address, self.password) for address in domain]
+        out = [self.wallet.get_private_key(address, self._password) for address in domain]
         return out if is_list else out[0]
 
     @command('w')
@@ -334,19 +337,19 @@ class Commands:
     @command('wp')
     def getmasterprivate(self):
         """Get master private key. Return your wallet\'s master private key"""
-        return str(self.wallet.get_master_private_key(self.wallet.root_name, self.password))
+        return str(self.wallet.get_master_private_key(self.wallet.root_name, self._password))
 
     @command('wp')
     def getseed(self):
         """Get seed phrase. Print the generation seed of your wallet."""
-        s = self.wallet.get_mnemonic(self.password)
+        s = self.wallet.get_mnemonic(self._password)
         return s.encode('utf8')
 
     @command('wp')
     def importprivkey(self, privkey):
         """Import a private key. """
         try:
-            addr = self.wallet.import_key(privkey, self.password)
+            addr = self.wallet.import_key(privkey, self._password)
             out = "Keypair imported: " + addr
         except Exception as e:
             out = "Error: " + str(e)
@@ -377,7 +380,7 @@ class Commands:
     def signmessage(self, address, message):
         """Sign a message with a key. Use quotes if your message contains
         whitespaces"""
-        sig = self.wallet.sign_message(address, message, self.password)
+        sig = self.wallet.sign_message(address, message, self._password)
         return base64.b64encode(sig)
 
     @command('')
@@ -415,7 +418,7 @@ class Commands:
         tx = self.wallet.make_unsigned_transaction(coins, final_outputs, self.config, fee, change_addr)
         str(tx) #this serializes
         if not unsigned:
-            self.wallet.sign_transaction(tx, self.password)
+            self.wallet.sign_transaction(tx, self._password)
         return tx
 
     @command('wpn')
@@ -522,7 +525,7 @@ class Commands:
     @command('wp')
     def decrypt(self, pubkey, encrypted):
         """Decrypt a message encrypted with a public key."""
-        return self.wallet.decrypt_message(pubkey, encrypted, self.password)
+        return self.wallet.decrypt_message(pubkey, encrypted, self._password)
 
     def _format_request(self, out):
         pr_str = {
@@ -587,7 +590,7 @@ class Commands:
         if not alias:
             raise BaseException('No alias in your configuration')
         alias_addr = self.contacts.resolve(alias)['address']
-        self.wallet.sign_payment_request(address, alias, alias_addr, self.password)
+        self.wallet.sign_payment_request(address, alias, alias_addr, self._password)
 
     @command('w')
     def rmrequest(self, address):
diff --git a/lib/daemon.py b/lib/daemon.py
index 94a97add4..de9354dc7 100644
--- a/lib/daemon.py
+++ b/lib/daemon.py
@@ -135,7 +135,6 @@ class Daemon(DaemonThread):
         return wallet
 
     def run_cmdline(self, config_options):
-        password = config_options.get('password')
         config = SimpleConfig(config_options)
         cmdname = config.get('cmd')
         cmd = known_commands[cmdname]
@@ -146,8 +145,9 @@ class Daemon(DaemonThread):
         args = map(json_decode, args)
         # options
         args += map(lambda x: config.get(x), cmd.options)
-        cmd_runner = Commands(config, wallet, self.network)
-        cmd_runner.password = password
+        cmd_runner = Commands(config, wallet, self.network,
+                              password=config_options.get('password'),
+                              new_password=config_options.get('new_password'))
         func = getattr(cmd_runner, cmd.name)
         result = func(*args)
         return result