What was the Panic of 1819 and the Panic of 1837?

The Panic
of 1819 and the Panic of 1837 were both connected to increased speculation in western lands and
banking policies that fueled that speculation. In the Panic of 1819, the Second Bank of the
United States tried to slow speculation in western lands by reducing the amount of money
available to banks and by calling in loans. This caused state banks to also call in loans, and
when people couldn't pay back their loans, the banks foreclosed on mortgages, causing
unemployment levels to rise, bankruptcies to occur, and many banks to fail.

In the Panic of 1837, something similar happened. President Jackson disliked the national bank
and refused to extend its charter in 1832. He withdrew federal money from the national bank and
deposited this money and new revenues into state banks. These state banks had more lenient
policies regarding loans, and many people borrowed money to buy western land.
President...