The Panic of 1837: Economic Crisis

1837 marked one of the most severe financial crises in American history, known as the Panic of 1837. This depression lasted until the mid-1840s and had far-reaching consequences across the nation.

Causes of the Crisis

• President Andrew Jackson's dissolution of the Second Bank of the United States
• Speculative lending practices in western lands
• The Specie Circular of 1836, which required payment for government lands in gold or silver

Political Landscape

Martin Van Buren became the 8th President of the United States in March 1837, inheriting a nation on the brink of economic collapse. His presidency would be largely defined by his handling of this crisis.

Westward Expansion

Despite economic hardship, 1837 saw continued westward expansion:

• Michigan became the 26th state on January 26, 1837
• The Territory of Wisconsin was established
• Native American tribes continued to face displacement under the Indian Removal Act

Transportation Revolution

The transportation infrastructure continued to develop:

• Construction of railroads, though slowed by the financial crisis
• Expansion of canal systems, particularly in the Northeast
• Development of steam-powered river transportation

Social Movements

Several important social movements gained momentum: