The Panic of 1837 was a financial crisis caused by land speculation and large debts from new railroad and canal systems. As President Jackson's term neared its end, cotton production and cities were growing rapidly. However, when the Specie Circular required payment in gold/silver instead of paper bank notes, states could not pay debts which caused a panic. This led to the worst depression up to that time, with high unemployment and struggling families, lasting from 1837 to 1843.

1. Panic of 1837

2. The Country During this Time
• Andrew Jackson was near finishing his term as president
• Cotton production in the south was increasing and cities
were growing rapidly
• Many different groups of people were going out and
buying new lands
• Many canals and roads needed to be repaired and this
was done by the state

3. What were the causes of the Panic of 1837
• For one of the first time in US history the Treasury had begun to accumulate
a surplus which was distributed to the state governments.
• The States were thought to be hoarding the gold and silver and paying the
national bank with paper bank notes.
• In 1836, shortly before leaving office, the Specie Circular was created by
President Jackson which wouldn’t allow the states to pay debts with paper
bank notes.

4. What was the Panic of 1837?
• A financial crisis that was created when land was bought, but
the state wouldn’t have enough specie (gold and silver) to pay
for it
• Large debts were created because of many new railroad
systems and canals
• Land speculation created the bulk of the problems during the
Panic because people could not pay for the land.

5. What were the results?
• The worst depression up to this time came shortly after and
lasted until 1843
• An extremely large, newly formed debt of nearly Forty
million was created mainly from the land speculation
• Investments were made in foreign stocks with hopes of
rebuilding our trashed economy.

6. The Depression
• Shortly after the Panic of 1837 a depression
lasting about six years occurred.
• During this time, unemployment was at an
all time high.
• Many families struggled to get by with the
necessities such as food and shelter.

7. Sources
• http://www.thehistorybox.com/ny_city/panics/pani
• http://www.u-s-history.com/pages/h967.html
• http://www.landandfreedom.org/ushistory/us8.htm
• AP US History Book