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Explain the role of banks in the Panic of 1837.

User Brycejl
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17 votes

Answer:

They suspended specie payments and would no longer redeem commercial paper in specie at full face value.

The resulting high inflation, and Jackson policies favoring hard currency (gold or silver) led many investors to panic and many banks to close due to insufficient reserves, in a financial crisis known as the Panic of 1837.

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User Bep
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