The Panic of 1837 was a financial crisis in the United States that led to a severe economic depression. It began when banks stopped accepting paper money, causing a loss of confidence in the financial system. Many businesses failed, and unemployment rose sharply as people struggled to find work. The crisis was influenced by several factors, including over-speculation in land and the decline of cotton prices. The policies of President Martin Van Buren and the effects of the Second Bank of the United States also played significant roles in the economic turmoil that followed.