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What Caused The Panic Of 1837

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The Panic of 1837 was a financial crisis, or market correction, driven by tentative fever. Inflation became uncontrolled after federal deposits to the Second Bank of the United States were withdrawn, based on the assumption that the government was selling land for state bank notes of questionable value. The Panic of 1837 involved Andrew Jackson administration issuing the Specie Circular, declaring that it would accept only gold and silver as payment for public land. Prices fell about 25 percent and many businesses began to fail and farmers were unable to pay their mortgages because of their decline in income and because they were losing their jobs. Martin Van Buren, who became president in March 1837, was largely blamed for the panic. The panic
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Toward the end of 1861 using specie payments were not allowed, which meant that paying in gold or silver was no longer acceptable. That left people having to pay only in paper currency. To add to the matter, the Government issued the Legal Tender Act after payment in gold or coins was banned. This caused banknotes to count for most of the currency. The National Bank Act brought financial stability to the nation, but failed to solve the nation’s financial issues.

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The one great panic of the 1930s began with the stock market

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Because of economic changes, farmers wanted the US government to to fix their problems through currency changes. After slavery was abolished with the Emancipation Proclamation and the government focused on rebuilding America’s infrastructure, prices for many crops began to drop. Across the nation, farmers began to lose money. In addition, this drop in prices only applied to crops, and not to the other services like shipping and transportation, which remained high. Farmers continued to lose profits until 1892, when a depression sent many farmers into deep debt.

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Duane, and Roger B. Taney, until he found a secretary willing to distribute the money from the National Bank to smaller banks, Levi Woodbury. With this, local state banks had all the responsibilities and power of banking; only they could give out loans and invest. But, after irresponsible investments, the banks quickly lost the funds and began the process of the U.S. falling into the Panic of 1837. On top of the bank’s misjudgments, the value of the paper currency was falling due to Jackson’s Specie Circular, an act that made only gold and silver an acceptable currency for land. Such economic instability undermined the people’s faith in the economy and eventually lead to the Panic of 1837, a major financial

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As a result due to bank power, the Commercial Law was established to help charter businesses and create limited liability for investor’s. Developers were legally allowed to buy land from the unwilling. It also didn’t allow employees who were hurt in the workplace to lay blame onto their employers. These things enabled investors who were close to banks to succeed and increase their wealthy. There were many people who believed that this would lead to a collapse in the economy for those with unequal privileges, and despite the large boom in the economy the first few years, there was the panic of 1819.

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The Great Depression began with the famous stock market crash known as “Black Tuesday” and later went on to rapidly develop into one of the most dramatic economic declines in the history of Westernized society. Two of the main causes of the Great Depression were the abuse of the stock market and the general distrust of banks instilled within the American public, which led to the decline of the American economy. President Herbert Hoover, elected in 1928, was a firm believer of rugged individualism and that the economy has natural cycles, which prompted him to employ a “wait and see” approach with the American people when the Depression hit. Soon after, President FDR won the 1932 election by a landslide and enacted a collection of programs

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The Panic of 1819 raised concerns of Americans by enhancing their feelings on the controversies and problems of the time. During that depression, Banks throughout the country failed; mortgages were foreclosed, forcing people out of their homes and off their farms. Falling prices impaired agriculture and manufacturing, triggering widespread unemployment. Additionally, John Quincy Adams, the Secretary of State to James Monroe, claimed that both the House of Representatives and the Senate was trying to limit the powers of the President. The imbalance of power would ultimately cause a destructive prospect.

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The financial crisis triggered a depression that lasted from 1873 to 1879 and lead to over 15,000 businesses failing in a just two years. In January 1877, congress set up a special commission of

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FDR was looking forward into the future of the economy of the United States with this new policy developed and also with the creation of the FDIC or Federal Deposit Insurance Corporation. 
 The Federal Deposit Insurance Corporation was created in order to protect the money of the Americans in their certain choice of bank. One of the main and horrible effects of the Great Depression had on the American public was that all of the money that they had saved in back accounts were lost and couldn’t be replaced by the banks. A cruel way of loosing someones hard earnings and lifesavings. Which is why The FDIC (Federal Deposit Insurance Corporation), was created because what the FDIC did was that it protected the money of the customers if it was to ever get lost with a guarantee up to a quarter of a million.

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They believed that the current Congress would re-charter the bank and they believed that Jackson wouldn’t risk the loss of votes in vetoing the Bank. Jackson’s hatred for the bank became more of an obsession. Jackson vetoed the Bank Re-charter Bill, and ordered the federal government’s deposits removed from the Bank and placed in state banks. These state banks were privately owned and it led to large inflation and the Panic of 1837. The inflation caused by this is held responsible for the government holds and laws regarding national and private banks.

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In 1933, Franklin D. Roosevelt became the president of the United State after President Herbert Hoover. The Great Depression was also at its height because President Hoover believed that the crash was just the temporary recession that people must pass through, and he refused to drag the federal government in stabilizing prices, controlling business and fixing the currency. Many experts, including Hoover, thought that there was no need for federal government intervention. ("Herbert Hoover on) As a result, when the time came for Roosevelt’s Presidency, the public had already been suffering for a long time.

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America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.

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This caused the new banks’ failure by issuing the Specie Circular order in 1836. The government land required payment to be in gold. The National Banks of United States collapsed, this caused what we know as the Panic of 1837, that Andrew Jackson’s successor had to deal with. This was much unorganized, banks got removed, etc. The lack of national banks was one of the many speculations that contributed policies that caused the market to crash in the year of 1837.

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Local governments then looked to borrow money but it became very costly and eventually impossible to do. The federal government didn 't do a whole lot until around 1931. Bills were passed by the federal government to provide grants and loans to states to attempt to help with unemployment. Lots of people were unable to get jobs and have an income requiring them to sell everything they owned just to get money to buy food. An attempt to fix this was proposed by Harvey D. Gibson.

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441 Words | 2 Pages

The fear

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