USA HISTORY

Detailed explanation-1: -President Andrew Jackson took credit for paying off the national debt completely in 1835 and the following year, a record $25 million in land sales accounted for about half of all federal receipts. The U.S. Treasury now had a budget surplus with no public debt.

Detailed explanation-2: -The economic Panic of 1837 led to widespread unemployment, economic depression, devaluing of cotton and paper money, and bank and financial failures. President Van Buren blamed the crisis on the easy availability of credit and rampant speculation.

Detailed explanation-3: -Challenges: Three months into Martin Van Buren’s presidency, the Panic of 1837 engulfed the country in its worst depression to date. Van Buren was largely ineffective at stemming the economic collapse. He completely stopped any Federal aid to internal improvements.

Detailed explanation-4: -The resulting high inflation, and Jackson policies favoring hard currency (gold or silver) led many investors to panic and many banks to close due to insufficient reserves, in a financial crisis known as the Panic of 1837.