The Panic of 1837

The Panic of 1837 was a financial crisis or market correction in the United States built on a speculative fever. The end of the Second Bank of the United States had produced a period of runaway inflation, but on May 10, 1837, in New York City, every bank began to accept payment only in specie (gold and silver coinage), forcing a dramatic, deflationary backlash. 

This was based on the assumption by the former president, Andrew Jackson, that the government was selling land for state banknotes of questionable value. The Panic was followed by a seven-year depression, with the failure of banks and then-record-high unemployment levels.