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Depression Doldrums and the Independent Treasury. By: Caroline Moore and Kaitlyn Baerenstecher. Panic of 1837. Causes: “Get rich quick” with “land-office business” Jacksonian Finance Failure in wheat crops British Bank Failure “Pet Banks” Effects Transportation advancements
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Depression Doldrums and the Independent Treasury By: Caroline Moore and Kaitlyn Baerenstecher
Panic of 1837 • Causes: • “Get rich quick” with “land-office business” • Jacksonian Finance • Failure in wheat crops • British Bank Failure • “Pet Banks” • Effects • Transportation advancements • Bank failures • Price decrease • Unemployment
Political cartoon demonstrating the unemployment effects of the Panic of 1837
Major People • Whigs • New major political party • Martin Van Buren • Divorce Bill
“Divorce Bill” • Divorce government from banking • Not popular with even Van Buren’s own party (Democrats) • Whigs hated this bill • Led to the ideas of the Independent Treasury Bill
Independent Treasury Bill • Passed in 1840 • Whigs repealed it later • Established independent treasury • Government put large sums of money into banks in big cities
Concept Summary • Western expanders wanting quick money was the main cause of the Panic of 1837. • Van Buren’s idea of “divorcing” the government from the banks led to the Independent Treasury Bill.
Spread of Democracy/ Jackson Overstepping his Power • Democratic ideals spreading • Jackson removed National Bank and created Specie Circular • Beyond his purpose • Both caused the Panic of 1837, which led to the Independent Treasury Bill