Changes

During Jackson's presidency, his acolytes wanted to gain control of the economy and eliminate the nation's central bank, the Second Bank of the United States. This created a "bank war" when President Andrew Jackson vetoed a bill that would renew the bank’s charter and money policies. As a result, this caused many state banks to become insolvent due to their inability to access federal funds. Additionally, with President Andrew Jackson’s Specie Circular in 1836 all land purchases had to be made with gold or silver coins instead of paper money. The Specie Circular in 1836 required that land purchases be made with hard currency, such as gold or silver, rather than paper money. This policy helped to reduce the money supply, making it more difficult for banks to meet their obligations. This further limited the ability for banks to lend out money as they had less coins and gold in their vaults. This exacerbated the lack of capital and liquidity amongst state banks.

====The Bank Panic and Cotton Prices==== This caused a bank panic, where people pulled their money out of banks, fearing that the banks would not be able to cover the withdrawals. The panic Bank Panic was compounded by the own financial troubles of many banks, when English banks stopped lending money to American Banks. This made it difficult for American banks to scale their loans and caused many Southern Banks to fail. As a result, there were massive runs on vaults of major banks and other financial institutions as people scrambled to withdraw their money from these sources. This banking crisis created a domino effect on the American economy, with other industries such as real estate crashing due to lack of liquidity in the market and lower monetary reserves for lenders. The crisis was further worsened by plantation owners who had been cultivating many crops but pumping money into land speculation instead of reinvesting in their plantations. ====The Cotton Bubble====

====The Combination of a Speculative land boom and Bank Failures====The Panic of 1837, as it became known, was a brewing major economic crisis that had been led by an ailing economy and the revocation of the national bank charter under president Andrew Jackson. In the 1830s, there was a speculative boom in land, particularly in the western United States. People were buying land with the hope of selling it later at a higher price, and banks were lending money to finance these purchases.  The loose state banking practices, such as granting loans to anyone regardless of their credit history, coupled with a lack of control over monetary policy and inflationary practices, gave way to a series of bank runs and credit contraction. This led investors to pull out their money from banks and investments, greatly exacerbating the panic even further. When Martin Van Buren took office in 1837, he sought to implement new policies to combat the crisis. Many of the banks that were lending money to speculators were poorly managed and had inadequate reserves. When the banks started to fail, depositors rushed to withdraw their money, causing even more bank failures.

He attempted ====The Panic Arose from the misguided policies of Andrew Jackson====Jackson's elimination of the 2nd Bank of the United States triggered as series of events that ultimately spiraled out of control. In addition to regulate destroying the national bankUS Bank, which preceded the financial crisis. He he also attempted sought to limit the actions of state banks, which had caused runaway inflation. He removed government deposits from these banks, and this became one of the first angry measures taken by Andrew Jackson when he became President in 1829. Jackson wanted to reduce government bonds and regulate printing of currency. His policies, which quickly became known as “Jackson's” policies, distributed currency through banks with little oversight or national direction for printing issuance. This lack of regulation helped create a lack of confidence in national banks and a surge in inflation.