Which 1837 U.S. financial crisis began after a speculative boom in land and cotton?

The Panic of 1837 was a major United States financial crisis that followed a speculative boom in land and cotton. It began when confidence fell and banks suspended specie payments, meaning they stopped exchanging paper notes for gold or silver.

Several pressures converged. President Andrew Jackson’s banking policies, including the removal of federal deposits from the Second Bank of the United States, changed the credit system. His Specie Circular also required payment for federal land in precious metals. At the same time, falling cotton prices weakened American exporters and borrowers.

The downturn produced widespread bank failures, business collapses, unemployment, and years of economic hardship. Martin Van Buren became president as the crisis unfolded and established the Independent Treasury system in response. The panic is distinct from the Panic of 1857, which had different immediate triggers and occurred two decades later.