Written in the shadow of the 2008 financial collapse, this monograph ties together a number of trends that are often overlooked in how the the 1837 panic has usually been blandly treated as an economic hiccup. For one, Roberts reminds readers that this is a time when the United States was very much in the economic orbit of Great Britain and that the explosion of the panic had as much to do with the Bank of England seeking to call in its debts as anything else. Two, economic policy is often a reflection of political principles. The 1837 emergency and its long duration is a reminder of that reality. This being the period of peak Jacksonianism, with its distrust of centralized authority, maximum power in the state capitals, and the craze for "internal improvements" in the wake of the success of the Erie Canal The result of which being that assorted state governments were in competition to build up their transportation infrastructure so as to win the battle for internal trade; taking on unsustainable levels of speculative debt to do so.

Exacerbating the crisis were a number of factors. One was a lack of federal fiscal structures that could manage the crisis, particularly since the federal government's main concern of the time was to try and salvage its holdings of hard money deposited with the favored state banks, which only further inured the economy in stasis. Then there was the matter of how many state governments chose to face the issue of debt by simply defaulting on their payments, which led to the collapse of economic currents between the United States and European sources of investment.

Ultimately the country did pull through the crisis but there were a variety of long-term impacts. One was that this is where the fiscal freedom of action of state governments were trimmed back. Two, this period also saw a strengthening of federal executive power, in the wake of Congress failing to rise above sectional rivalry. Three, this period also sees the rise of the big-city police forces to maintain order in the face of mob violence. Ultimately though, the solution to the crisis was either Europe having to reactivate its economic relationship with the United States due to its own economic crisis, or the Mexican War serving as a means to export domestic stress from the country (besides providing access to the gold of California).

It should also be noted that what makes this a modern historical study is that Roberts is acutely aware of climate, as it was a series of bad harvests in Britain that brought on the crisis and, frankly, it was another series of bad harvests in Europe that made the United States indispensable again (once assorted structural changes and "reforms" had been made). ( )

This was a well written book that is easy to read. If you know 19th century United States history, this book isn't going to have very much new for you with one exception. Specifically, the book spends time discussing in detail the number of states that defaulted on their "state" debt during the business depression and how that affected the United State's relationship with Britain. I knew about these defaults in a general way, but had never read a more detailed history about it. It's no wonder since the last monograph related specifically to these defaults is about fifty years old.

If you are not strong in your 19th century U.S. history, this monograph will very beneficial to you. ( )