Did the Bank War cause the Panic of 1837? In my opinion, yes, it did cause the panic. Many reasons why it was harmful to the growth of the United States was when every bank stopped payment specie (gold and silver coinage). Because of the panic, unemployment rates rose drastically. Thousands of people lost their jobs. Some causes include the economic policies of President Andrew Jackson who came up with the Specie Circular. He also refused to set up the Second Bank of the United States. This resulted with the loss of government funds from the bank. In two months, the failures in New York by it’s self-lost close to $100,000,000 in value. Of the 850 banks in the U.S. at the time, a total of 343 closed. Financially, it never fully recovered
