The Panic of 1837
And other economic facts from 1830-1840
The causes of The Panic of 1837
- The panic of 1837 was caused by the economic policies of Andrew Jackson who created the “Specie Circular” by executive order and he refused to renew the charter of the Second Bank of the U.S.
- Another problem that the people blamed the panic for was Mexican bimetallism, which drove Mexican circulation into America, where it was legal.
- Another cause was that the government was not spending enough money, and that caused an increase in money and credit supply
- They also had a decreased interest rate
The Effects of The Panic of 1837
- Vermont credit systems and business systems took a hard blow
- No permanent debt. in 1838, and did not have a lot of economic stress the following years
- In VA, NC, and SC panic caused a increase in the interest of diversifying crops
- New Orleans felt a depression in business and money market stayed in bad condition throughout 1843
- Miss. planters were in complete bankruptcy
Other economic issues of the time.
- 1830-Congress passes a Pre-emption act which grants settlers the right to purchase at $1.25 per acre.
- March 19th, 1831- First reported bank robbery in U.S. history occurs at the city bank of New York.
- Before the 1837 panic the nation experienced rapid growth in the economy
- Increased mechanization of product
- The emergence of modern domestic and international markets
- Expansion in agriculture in the west and old south west
Current Events of the time.
Andrew Jackson was president at this time.
The Texas War For Independence (1835-1836)
Mexican President Santa Anna proclaims himself dictator and attempts to disarm the americans in Tejas, sending troops to reclaim a cannon given to the settlers for protect from Indian attacks. When americans don't give the cannon back the war begins.