The 1837 U.S. financial crisis marked by bank failures and a long economic downturn was the Panic of 1837.
The panic began in May 1837, when New York City banks suspended specie payments, meaning they stopped exchanging banknotes for gold or silver. A wave of bank failures and business collapses followed across the United States. The crisis was closely connected to land speculation, falling cotton prices, and unstable banking practices.
President Andrew Jackson’s policies, including the Bank War and the Specie Circular, are often discussed as contributing factors, although historians debate the weight of each cause. The downturn lasted for years and was especially severe under President Martin Van Buren.
The Panic of 1837 is sometimes confused with the Panic of 1819 or the later Panic of 1857. It was not a single-day stock-market event; it was a broad banking, credit, and economic crisis.