During the early 1800s, America was a young nation whose political and economic structure was not as strong as it is today. As a result America had to face crop, insuarance and banking failures together with drops in the price of the cotton and the stock market and a crisis of credit and cash. It brought what was known as the economic panics.
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atlantic and the candada passages
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This ailing economy of early 1837 led investors to panic – a bank run ensued – giving the crisis its name. The run came to a head on May 10, 1837, when banks in New York City ran out of gold and silver. They suspended specie payments and would no longer redeem commercial paper in specie at full face value.
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