2. Van Buren is president
Heavy borrowing from citizens
Investing of borrowed money
Background
3. Jackson cancels Bank of U.S.
Specie Circular
Failure of wheat crops; high grain prices.
Failing British Banks
Land speculation
Causes
4. Record unemployment rate
Failure of New York banks
Van Buren blamed, Whig Party takes 1840
election
Effects
5. Divorce Bill
1838-1839: Brief recovery, soon ended
Sub-treasury system
Recovery Efforts
6. Tariff of 1842
◦ Reverse effects of Compromise Tariff of 1833
◦ Raised average rate to 40%
◦ New payment system
◦ International trade declines
◦ Caused split in Whig party
◦ Repealed by Walker Tariff
Final Recovery