Panic of 1837

The Panic of 1837 was a financial crisis that led to a major depression lasting until the mid-1840s. It resulted from speculative lending, a land bubble collapse, declining cotton prices, international economic factors, and the lack of a central bank. A bank run in May 1837 worsened the crisis, leading to widespread deflation, unemployment, and business failures. Despite economic struggles, industrial advancements and westward expansion eventually helped recovery. The discovery of gold in California in 1848 spurred new economic growth.