The U.S. financial crisis that began in 1837 after banks stopped converting paper money into gold and silver was the Panic of 1837.
The panic began in May 1837 when banks in New York suspended specie payments, meaning they would no longer reliably exchange banknotes for gold or silver. Bank failures, falling cotton prices, land speculation, and tighter credit then spread the distress across the United States.
President Andrew Jackson’s financial policies, including the removal of federal deposits from the Second Bank of the United States, are often discussed as contributing background. Martin Van Buren took office shortly before the crisis and faced the resulting depression.
The Panic of 1837 is distinct from the Panic of 1819 and the Panic of 1857. It produced years of deflation, unemployment, and business failures in the United States.