The 1837 U.S. financial panic, marked by bank failures and a five-year depression, was called the Panic of 1837.
The crisis began in May 1837 when banks in New York City suspended payments in gold and silver. A speculative boom in land and transportation projects had been supported by easy credit, while President Andrew Jackson’s financial policies and international monetary pressures contributed to instability. When confidence weakened, banks curtailed lending and borrowers struggled to repay debts.
The resulting downturn lasted until about 1842 and brought widespread business failures, unemployment, falling prices, and severe hardship. States also faced difficulty meeting obligations connected with canals, roads, and other internal-improvement projects.
The Panic of 1837 is distinct from the Panic of 1819 and the later Panic of 1857. It also helped damage the political standing of President Martin Van Buren, who was in office when the depression deepened.