Aftermath and Economic Rebuild

The Ghost of the Bank

Due to the lack of specie, many states had to default on debts which upset many foreign powers including Britain. The United States struggled to keep banks in business following the crash. Out of over 800 state banks, almost 400 either fully shut down or partially failed. This was the blow to Jackson's banking system that it would never recover from. As for American citizens, numerous jobs were lost and unemployment was high. Individuals who managed to hold specie throughout the panic were rare, but if they could hold on to it they were financially secure while everyone else struggled. The end of the panic is debated but most scholars would agree that the depression ended somewhere between 1842-1843. Economically the country was not able to fully recover until the California Gold Rush in 1848, which gave a steady supply to the specie reserves.

There have been many recessions following the Panic of 1837 that have had worse effects on the American economy, but this was the first serious recession in the new country. The legacy of Andrew Jackson was tarnished by many people because of his role in the creation of this dire economic situation. Economic struggles are a foundational aspect in the development of a country and the Panic of 1837 lead to the development of more successful monetary and banking policies, helping to secure the future success of the United States. 

Aftermath and Economic Rebuild