Panic of 1837
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The Panic of 1837 was a severe financial crisis in the United States that began in the spring of that year. It was characterized by widespread bank failures, a stock market crash, and a general climate of economic fear. This panic was largely a consequence of President Andrew Jackson's financial policies, particularly his dismantling of the Second Bank of the United States (BUS) and his issuance of the "Specie Circular".1
Jackson's removal of federal deposits from the BUS and their placement in state-chartered "pet banks" led to irresponsible lending and rampant land speculation. The Specie Circular, which required land purchases to be made with gold or silver, caused many banks to fail due to insufficient specie reserves. These actions, combined with economic downturns, contributed to the panic, which significantly impacted various industries, including the clock industry. The Panic of 1837 marked the end of a period of economic expansion and ushered in a severe decline in the business cycle.123
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- Specie Circular
ā¦the economic crisis called the Panic of 1837. On May 21, 1838, a joint resolution of Congress repealed the Specie Circular.
Read Moreā¦the economic crisis called the Panic of 1837. On May 21, 1838, a joint resolution of Congress repealed the Specie Circular.
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The Rise of Andrew JacksonThe Bank WarThe Panic of 1837 seemed to vindicate Nicholas Biddle, who had warned that without the BUS to monitor credit and control currency, the economy would run rampant and finally wreck. In any case, Jacksonās successor Martin Van Buren would suffer the consequences of this policy andā¦
Read MoreThe Panic of 1837 seemed to vindicate Nicholas Biddle, who had warned that without the BUS to monitor credit and control currency, the economy would run rampant and finally wreck. In any case, Jacksonās successor Martin Van Buren would suffer the consequences of this policy andā¦
Read More