Which document is most associated with the start of the financial crisis in May 1837?
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Correct answer: The notice that New York banks were suspending specie payments
On May 10, 1837, banks in New York City ran out of gold and silver and announced they would no longer redeem their paper notes for specie. This led to a nationwide panic as people rushed to withdraw their funds from other banks.
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More Panic of 1837 questions
- The 'American System' advocated by Henry Clay was designed to prevent crises like the Panic of 1837 by:
- During the mid-1830s, the price of which commodity skyrocketed and then crashed, contributing to the panic?
- What happened to the Independent Treasury Act after the Whigs took power in 1841?
- The Specie Circular, issued by the Jackson administration in 1836, required that public lands be purchased using which of the following?
- Which of the following was a primary cause of the Panic of 1837?
- President Martin Van Buren’s response to the Panic of 1837 was largely characterized by which philosophy?