aug 5, 1837 - Panic of 1837
Description:
When Jackson was president, many state banks received government money that had been withdrawn from the Bank of the U.S. These banks issued paper money and financed wild speculation, especially in federal lands. Jackson issued the Specie Circular to force the payment for federal lands with gold or silver. Many state banks collapsed as a result. A panic ensued (1837). Bank of the U.S. failed, cotton prices fell, businesses went bankrupt, and there was widespread unemployment and distress - , Ecnomic downturn caused by loose lending practices of stat banks' and overspeculation. Martin Van Buren spent most of his time in office attempting to stablize and lessen the economic situation
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