Crisis Chronicles: The Man on the Twenty-Dollar Bill and the Panic of 1837
Thomas Klitgaard and
No 20150508, Liberty Street Economics from Federal Reserve Bank of New York
President Andrew Jackson was a 'hard money' man. He saw specie--that is, gold and silver--as real money, and considered paper money a suspicious store of value fabricated by corrupt bankers. So Jackson issued a decree that purchases of government land could only be made with gold or silver. And just as much as Jackson loved hard money, he despised the elites running the banking system, so he embarked on a crusade to abolish the Second Bank of the United States (the Bank). Both of these efforts by Jackson boosted the demand for specie and revealed the soft spots in an economy based on hard money. In this edition of Crisis Chronicles, we show how the heightened demand for specie ultimately led to the Panic of 1837, resulting in a credit crunch that pushed the economy into a depression that lasted until 1843.
Keywords: panic; 1837; jackson; specie; bank of the United States; gold; hard money (search for similar items in EconPapers)
JEL-codes: N2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-his
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://libertystreeteconomics.newyorkfed.org/2015 ... e-panic-of-1837.html Full text (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fednls:87028
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Liberty Street Economics from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by ().