The Panic of 1837 occurred during Martin Van Buren's presidency and was caused by heavy borrowing from citizens that was then invested in speculative ventures. This led to a record unemployment rate and the failure of New York banks. Van Buren was blamed for the crisis and the Whig Party took control of Congress in the 1840 election. Recovery efforts included a brief period of improvement from 1838-1839, followed by Van Buren's sub-treasury system and the Tariff of 1842, though it caused splits in the Whig party and was later repealed.

1. Panic of 1837

2.  Van Buren is president
 Heavy borrowing from citizens
 Investing of borrowed money
Background

3.  Jackson cancels Bank of U.S.
 Specie Circular
 Failure of wheat crops; high grain prices.
 Failing British Banks
 Land speculation
Causes

4.  Record unemployment rate
 Failure of New York banks
 Van Buren blamed, Whig Party takes 1840
election
Effects

5.  Divorce Bill
 1838-1839: Brief recovery, soon ended
 Sub-treasury system
Recovery Efforts

6.  Tariff of 1842
◦ Reverse effects of Compromise Tariff of 1833
◦ Raised average rate to 40%
◦ New payment system
◦ International trade declines
◦ Caused split in Whig party
◦ Repealed by Walker Tariff
Final Recovery

7.  http://www.publicbookshelf.com/public_html/The_Great_Republic_By_the_Master_Historians_Vol_
III/thepanic_ce.html
 http://www.u-s-history.com/pages/h967.html
 http://thehistorybox.com/ny_city/panics/panics_article5a.htm
Sources

8. The End