The 1837 United States financial crisis was known as the Panic of 1837. It began with a collapse in land prices and spread through banks, businesses, and employment across the country.
The crisis followed years of speculative lending and rapid expansion of state-chartered banks. President Andrew Jackson’s policies, including the removal of federal deposits from the Second Bank of the United States, changed the banking landscape. The Specie Circular also required many federal land purchases to be made with gold or silver, reducing easy credit.
The collapse of land values, falling cotton prices, and international credit problems placed pressure on banks. Numerous banks suspended specie payments, meaning they stopped redeeming paper notes for precious metal. The downturn lasted for years and badly damaged the presidency of Martin Van Buren, who inherited the crisis.