The Panic of 1837 was the U.S. financial crisis that followed a speculative lending boom.
The panic erupted on May 10, 1837, when banks in New York City suspended payments in gold and silver. Its background included land speculation, easy credit, falling cotton prices, and President Andrew Jackson’s financial policies, including the Specie Circular. British financial problems also reduced lending to the United States.
The resulting depression lasted for years. Banks failed, businesses closed, land prices collapsed, and unemployment rose. Martin Van Buren became president shortly before the panic and was widely blamed by political opponents, although the crisis had domestic and international causes.
The Panic of 1837 is distinct from the Panic of 1819 and the later Panic of 1857. It also led Van Buren to propose an independent treasury system, separating federal funds from commercial banks.