Why Did Van Burens Policies Hinder Economic Recovery?

Van Buren’s decision not to offer financial aid to Americans during the Panic of 1837 stemmed from his priority to safeguard the government’s funds. To achieve this, he established a national treasury, aiming to secure the funds away from private banks. This move was driven by concerns about the stability of the banking system at the time. Van Buren believed that by centralizing the treasury, he could better control and manage the nation’s financial resources, even if it meant withholding direct assistance to individuals affected by the economic downturn. This approach was rooted in a strategy to fortify the government’s fiscal foundation in the midst of a severe financial crisis.

In response to the economic turmoil brought on by the Panic of 1837, President Martin Van Buren took decisive actions to address the crisis. Recognizing the urgency of the situation, he called for a special session of Congress, which ultimately convened in September 1837. During this special session, President Van Buren put forth a notable and somewhat contentious proposal: the creation of an independent treasury system. Under this proposed system, the federal government would deposit its funds into a network of subtreasuries. This innovative approach aimed to safeguard federal funds and provide greater financial stability during times of economic uncertainty, thereby offering a potential solution to the financial upheaval gripping the nation. Van Buren’s plan represented a significant step toward addressing the challenges posed by the Panic of 1837 and promoting fiscal responsibility within the government.