National and State Bank policies in the 1830's contributed to the Inflation, The panic increased national debt depression because...
1833 - President Jackson went against the bank by recalling deposits of the federal government, and putting them to state banks. Meaning lots of useless money was being churned out (every bank had a special type of money) and countless loans were being issued without consideration and thought. During that, federal revenue due to land had greatly increased
<1835 - He used this as an "opening" to pay of the national debts, however, this was quickly demolished
1836 - The congress passed a law that required the federal surplus to be shared to the states in four payments, later on the Jackson Administration started the "Specie Circular" (where payments for federal land had to be paid in small installments using coins!)
In March 1837, the new elected president: Martin Van Buren had a big job on his hands; there was an festering economic crisis due to the free spirited bank practices in conjunction with crazy credits etc. it wasn't looking good
May 1837; NYC Banks stopped specie payments and with this, this created a new path for a bad economic recession. Due to this, Van Buren was under so many factors of pressure, he decided not to stop the Specie Circular. He created a set of economic proposals (September ) which was a key date; a self reliant treasury congress didn't want to accept. Meaning the economy plummeted in 1839 and didn't improve until 1843.
