The severe US financial crisis that began in 1837 was called the Panic of 1837.
The crisis followed years of speculation in land, canals, and other investments. President Andrew Jackson’s policies, including the removal of federal deposits from the Second Bank of the United States and the Specie Circular, contributed to tighter credit. The Specie Circular required payment for many government land purchases in gold or silver.
Banks suspended specie payments in May 1837, meaning they stopped exchanging paper notes for precious metals on demand. Bank failures, falling prices, and business collapses followed. The downturn lasted for years and caused widespread unemployment.
The Panic of 1837 is often linked to the economic policies of Jackson and his successor, Martin Van Buren, although historians debate the relative importance of domestic policy and international financial pressures. It should not be confused with the separate Panic of 1819.