When Van Buren entered office, the nation's economic health had taken a turn for the worse and the prosperity of the early 1830s was over. Two months into his presidency, on May 10, 1837, some important state banks in New York, running out of hard currency reserves, refused to convert paper money into gold or silver, and other financial institutions throughout the nation quickly followed suit. This financial crisis would become known as the Panic of 1837. The Panic was followed by a five-year depression in which banks failed and unemployment reached record highs.