1. Depression Doldrums and the Independent Treasury By: Mitch H. & Andy L.

2. Panic of 1837 The basic cause of the panic of 1837 was rampant speculation prompted by a get-rich quick scheme. Gamblers in the western lands borrowed money and started a land-office business that was expected to be successful. The westerners also invested in canals, roads, railroads, and slaves. Jacksonian finance was unable to help. The failure of the British banks caused British investors to get foreign loans. The money lent to the speculators was never returned to the failure of the get-rich scheme. This led to economic depression. People thought they would become rich. In reality they became broke.

3. Panic Results Many banks collapsed as they could not afford to make loans that they did not receive interest on and money lent was not returned. Commodity prices dropped. Public sales fell. Jobs were lost due to bank failure and a poor economy.

4. The Bills The Divorce Bill was proposed by Martin Van Buren. He wanted to separate the government from the bank altogether. Congress vetoed the bill as they felt the bank was necessary. The Independent Treasury Bill was passed by Congress in 1840. This established an independent treasury and government funds would be locked in vaults. However, the Whigs repealed this bill in 1841. The Jacksonian Democrats reenacted a similar bill in 1846 though, which had a lasting effect until merged with the Federal Reverse System in the 1900s. Martin Van Buren