The Franklin Mint History Of The United States, 1776-1973
Manufacturer
The Franklin Mint
CultureAmerican
DateNo Date
MediumSilver
DimensionsOverall: 1 3/4 in. (45 mm.)
Credit LineGift of Dr. Eugene F. Poutasse
Object number76.81.62
Not on view
DescriptionOne of collection of 200 silver medals.The 1837 medal: Industry Paralyzed by Depression
When President Van Buren was inaugurated the nation still outwardly seemed prosperous but it was an illusion built on credit and speculative boom during the last years of Jackon's administration. At the time of Jackson's first inauguration there were 329 banks. By the end of his second term there were 788. Bank note circulation had risen from 48 to 149 million dollars. Bank loans were five times as great in 1837 as in 1830, much of which went for land speculation. The distribution of the Treasury surplus to the States further stimulated the boom.
This inflated financial structure could no longer be supported. On May 10, 1837, New York banks suspended specie payments and were followed by other banks throughout the country. In all, 618 of them failed. By September, 9/10 of the factories in the East had shut down. Many business firms were bankrupted.
The depression lasted seven years and was particularly severe at first. One-third of the people were out of work. Wages fell 30 to 50 percent. In the larger cities there were bread lines, starvation and freezing. This was when Horace Greeley urged the jobless to "fly, scatter through the country, go to the Great West, anything but stay here."
