USA HISTORY

Detailed explanation-1: -The Panic of 1837 was a financial crisis in the United States that touched off a major depression, which lasted until the mid-1840s. Profits, prices, and wages went down, westward expansion was stalled, unemployment went up, and pessimism abounded.

Detailed explanation-2: -Historians have traditionally attributed the Panic of 1837 to a real estate bubble and erratic American banking policy. Most speculation concerned western land opened to settlement after Indian removals, but northeastern forests were among the most overvalued holdings.

Detailed explanation-3: -It was triggered by a collapse in cotton prices. A contraction in credit coincided with the problems in the cotton market, and the young American economy was severely affected. Banks were forced to call in loans, and foreclosures of farms and bank failures resulted.

Detailed explanation-4: -During the Panic of 1837, approximately ten percent of U.S. workers were unemployed at any one time. Mobs in New York City raided warehouses to secure food to eat. Prominent businessmen, like Arthur Tappan, lost everything. Churches and other charitable organizations established soup kitchens and breadlines.