The 1837 financial crisis was called the Panic of 1837.
The panic began in the United States in May 1837 when banks in New York City suspended the conversion of paper money into gold and silver. The suspension followed years of rapid land speculation, easy credit, and monetary policies associated with President Andrew Jackson’s banking reforms.
The crisis spread through the United States and affected Britain and other economies. Banks failed, businesses closed, land prices collapsed, and unemployment rose sharply. The downturn lasted for years and became one of the most severe economic contractions in the young country’s history.
A common mix-up is to treat the panic as a stock-market crash alone. Its most visible damage also occurred in banking, credit, land, and employment. President Martin Van Buren, who took office in March 1837, faced the crisis and later supported an independent Treasury system.