Jacksonian Monetary Policy, Specie Flows, And The Panic Of 1837
The Panic of 1837 stands among the most severe banking crises in U.S. history, marking the start of a business downturn from which the nation would not recover for six years. Given the serious consequences of the panic for the rapidly evolving commercial and industrial sectors, it is thus not surprising that a number of hypotheses have emerged to disentangle the "true" causes from a host of aggravating domestic and international shocks. To this day, however, the event remains not fully understood. In this paper, I organize previously unexploited information from the U.S. government documents and contemporary newspapers to take a fresh look at the panic. These sources point to a new explanation which places neither the official distribution of the federal surplus to the states in the Spring of 1837 nor an international shock at the heart of the crisis, although the latter may have served as a catalyst in the final weeks. Rather, a series of hitherto unremarked interbank transfers of government balances ordered in the year leading up to the crisis combined with a policy-induced increase in the demand for coin in the Western states to drain the largest New York City banks of their specie reserves and render the panic inevitable.
(This abstract was borrowed from another version of this item.)
Volume (Year): 62 (2002)
Issue (Month): 02 (June)
|Contact details of provider:|| Postal: Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK|
Web page: http://journals.cambridge.org/jid_JEH
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anonymous, 1965. "Group 7 Discussions on Rural Community Development," International Journal of Agrarian Affairs, International Association of Agricultural Economists, vol. 4(6), August.
- John W. Kendrick, 1961. "Productivity Trends in the United States," NBER Books, National Bureau of Economic Research, Inc, number kend61-1, September.
- N/A, 1965. "Current Developments," China Report, Institute of Chinese Studies, vol. 1(6), pages 2-8, November.
- anonymous, 1965. "Developments in consumer credit," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jun, pages 787-798.
- N/A, 1965. "Current Developments," China Report, Institute of Chinese Studies, vol. 1(3), pages 9-16, May.
- Richard H. Timberlake & Jr., 1960. "The Specie Circular and Distribution of the Surplus," Journal of Political Economy, University of Chicago Press, vol. 68, pages 109.
- N/A, 1965. "Current Developments," China Report, Institute of Chinese Studies, vol. 1(2), pages 9-14, March.
- anonymous, 1965. "Bank credit and monetary developments in 1964," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Feb, pages 213-225.
- anonymous, 1965. "Recent credit and monetary developments," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jul, pages 921-932.
- N/A, 1965. "Current Developments," China Report, Institute of Chinese Studies, vol. 1(5), pages 9-14, September.
- N/A, 1965. "Current Developments," China Report, Institute of Chinese Studies, vol. 1(4), pages 11-16, July.
- N/A, 1965. "China's Economic Developmentâ€”II," China Report, Institute of Chinese Studies, vol. 1(5), pages 15-17, September.
- N/A, 1965. "Research and Development in Electronic Capital Goods," National Institute Economic Review, National Institute of Economic and Social Research, vol. 34(1), pages 40-91, November.
When requesting a correction, please mention this item's handle: RePEc:cup:jechis:v:62:y:2002:i:02:p:457-488_00. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.