AP US History in 1 Minute Daily: The Panic of 1837 (Day 106/309)

Welcome to today’s explanation of the Panic of 1837 in my series- APUSH in 1 Minute Daily!

Downfall of Mother Bank, Wikimedia Commons

When Jackson vetoed the rechartering of the Bank of the United States, there was an expansion of unregulated and speculative lending practices by state banks. 

Visualizing 200 Years of U.S. Population Density, Visual Capitalist

With this easy credit, many people bought western lands and invested in infrastructure in the hopes of rising prices. 

Whig cartoon showing the effects of unemployment on a family that has portraits of Democratic Presidents Andrew Jackson and Martin Van Buren on the wall, Wikimedia Commons

However, this speculation didn’t last and many banks failed in the mid 1830s. People panicked and rushed to withdraw their deposits. This then contributed to business failures, increased unemployment, and overall economic hardships.

An 1837 caricature blames Andrew Jackson for hard times. Wikimedia Commons

The financial crisis, known as the Panic of 1837, continued to fuel opposition to the Democratic Party and the rise of the Whig Party. While national recovery was slow, lower land prices did encourage more settlers to migrate west.

The Panic of 1837 was caused in large part due to Jackson’s veto of the Bank of the United States and speculative banking practices. The financial crisis lasted for years and contributed to increased opposition to the Democratic Party.

Join me tomorrow as I explain Romanticism in the next APUSH in 1 Minute Daily!