The Panic of 1837
The Panic of 1837 was a great economic crisis that changed the trade relationships of the United States of America as well as their government.
The Economic Status of The United States of America:
-Growing number of foreclosure -The middle class shrinks -Growing number of failed banks -Debt in China paid; silver no longer needed -Start of a silver overflow The middle class begins to shrink dramatically, leaving men, who had no trouble paying taxes before, into complete bankruptcy. |
The Species Circular:
-Overflow of silver in America -Silver becomes national currency -Paper money is not used -Means there is no need for the Second National Bank -Jackson begins to do away with the Second National Bank The Species Circular was a way for Andrew Jackson to get rid of the corrupt Second National Bank while also using the abundance of silver in America as currency. |