The U.S. financial crisis that began in 1837 after a speculative boom in land and transportation was the Panic of 1837.
The panic followed years of rapid expansion in land purchases, canals, railroads, and cotton production. Banks issued large amounts of credit, while President Andrew Jackson’s policies, including the Specie Circular, helped shift transactions toward gold and silver. When confidence weakened and banks suspended specie payments, credit contracted sharply.
The crisis led to widespread bank failures, business bankruptcies, falling cotton prices, and high unemployment. Its economic effects lasted for several years, making it a prolonged depression rather than a brief market disturbance. The United States had no central bank at the time, which complicated efforts to stabilize the financial system.
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 and international causes. It came before the Panic of 1857 and the later panics of the Gilded Age.