The 1837 U.S. financial crisis was the Panic of 1837.
The panic began in May 1837 when banks in New York suspended payment in gold and silver. The crisis followed years of land and cotton speculation, rapid expansion of state-chartered banks, and policies associated with President Andrew Jackson’s opposition to the Second Bank of the United States. The 1836 Specie Circular also required payment for federal lands in hard money.
After the panic, banks failed, businesses closed, and unemployment rose sharply. Cotton prices fell, damaging merchants and planters who depended on exports. The downturn lasted for several years and affected the United States and parts of Europe.
The Panic of 1837 is not the same as the Panic of 1819, which was linked to the post-War of 1812 credit contraction. It is also distinct from the Panic of 1857, which followed the collapse of the Ohio Life Insurance and Trust Company.