The 1837 U.S. financial crisis that caused widespread bank failures and a long economic depression was the Panic of 1837.
The panic began in May 1837 when New York banks suspended conversion of paper currency into gold and silver. The crisis followed years of land and credit speculation, falling cotton prices, international financial pressures, and policies associated with President Andrew Jackson’s banking reforms. The collapse spread beyond New York as banks failed and businesses reduced investment.
The resulting depression lasted for several years. Unemployment rose, land prices fell, and many state governments struggled with debt. Martin Van Buren, who became president in March 1837, was blamed politically even though many underlying pressures had developed earlier.
The Panic of 1837 is sometimes confused with the Panic of 1819 or the Panic of 1857. Those were separate U.S. downturns, each with different timing and immediate causes.