The U.S. financial panic that began in 1837 after land speculation collapsed and banks suspended specie payments was the Panic of 1837.
The crisis followed a speculative boom in land, cotton, and other assets. President Andrew Jackson's banking policies, including the removal of federal deposits from the Second Bank of the United States, contributed to financial instability. The Specie Circular also required many land purchases to be paid for with gold or silver.
When confidence broke, banks stopped redeeming their notes for precious metals, businesses failed, and unemployment rose sharply. The downturn lasted for years and affected the United States, Britain, and other trading partners.
The panic is often linked with the presidency of Martin Van Buren, who took office in March 1837. Van Buren later proposed an independent treasury system, but the crisis was driven by several interacting causes rather than one single policy.