What brought about the economic depression of the late 1830s and the emergence of the whig party?

The economic depression of the 1830s occurred because of a series of poor decisions made by Andrew Jackson and state banks. Andrew Jackson disliked the national bank and, in 1832, vetoed the extension of its charter. However, the national bank’s charter ran until 1836, meaning the bank would continue to exist for the next four years. To reduce the effectiveness of the national bank, President Jackson deposited federal funds in state banks (also called "pet banks"). These banks had more lenient lending policies, and many Americans went to get loans from these banks in order to buy western land.

When Andrew Jackson realized that the speculation in western land was getting out of control, he issued the Specie Circular, which stated that land sales had to be made with gold and silver. However, this policy wouldn’t take effect until after the election of 1836. Once the policy went into effect, the economy slowed significantly, in part because people didn't have access to gold and silver.

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