The 1837 U.S. financial panic following speculative land buying, bank failures, and a credit contraction was the Panic of 1837.
The crisis began in May 1837, when banks in New York City suspended payments in gold and silver. A wave of bank failures and business collapses followed, and the resulting depression lasted for several years. Land speculation and easy credit had helped drive prices upward before confidence suddenly weakened.
The crisis was connected to policies under President Andrew Jackson, including the dismantling of the Second Bank of the United States and the Specie Circular, which required payment for much federal land in gold or silver. International financial pressures, including problems in Britain, also reduced available credit.
Martin Van Buren became president shortly before the panic and faced the economic consequences. His administration supported the Independent Treasury system, which separated federal funds from commercial banks. The Panic of 1837 is often described as one of the most severe U.S. economic downturns before the Civil War.