USA HISTORY

Detailed explanation-1: -Nearly half of all banks failed, businesses closed, prices declined, and there was mass unemployment. From 1837 to 1844 deflation in wages and prices was widespread. The lack of deposit insurance deepened the Panic. By 1850 the economy was booming again, a result of increased specie flows from the California Gold Rush.

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: -Declaring that the panic was due to recklessness in business and overexpansion of credit, Van Buren devoted himself to maintaining the solvency of the national Government. He opposed not only the creation of a new Bank of the United States but also the placing of Government funds in state banks.

Detailed explanation-4: -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.