The economic collapse of 1819 was called _______________ and resulted in a six-year depression.
journal article Show Indiana Magazine of History Vol. 44, No. 3 (September 1948) , pp. 227-243 (17 pages) Published By: Indiana University Press https://www.jstor.org/stable/27787691 Read and download Log in through your school or library Read Online (Free) relies on page scans, which are not currently available to screen readers. To access this article, please contact JSTOR User Support. We'll provide a PDF copy for your screen reader.With a personal account, you can read up to 100 articles each month for free. Already have an account? Log in Monthly Plan
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Journal Information Published continuously since 1905, the Indiana Magazine of History is one of the nation's oldest historical journals. Since 1913, the IMH has been edited and published quarterly at Indiana University, Bloomington. Today, the IMH features peer-reviewed historical articles, research notes, annotated primary documents, reviews, and critical essays that contribute to public understanding of midwestern and Indiana history. Publisher Information Indiana University Press was founded in 1950 and is today recognized internationally as a leading academic publisher specializing in the humanities and social sciences. As an academic press, our mandate is to serve the world of scholarship and culture as a professional, not-for-profit publisher. We publish books and journals that will matter 20 or even a hundred years from now – titles that make a difference today and will live on into the future through their reverberations in the minds of teachers and writers. IU Press's major subject areas include African, African American, Asian, cultural, Jewish and Holocaust, Middle East, Russian and East European, and women's and gender studies; anthropology, film, history, bioethics, music, paleontology, philanthropy, philosophy, and religion. The Press also features an extensive regional publishing program under its Quarry Books imprint. It is one of the largest public university presses, as measured by titles and income level. Rights & Usage This item is part of a JSTOR Collection. Authors’ Update: Murray Rothbard’s The Panic of 1819: Reactions and Policies was an additional source for this post and should have been cited. We regret the omission.
As we noted in our last post on the British crisis of 1816, while Britain emerged from nearly a quarter century of war with France ready to supply the world with manufactured goods, it needed cotton to supply the mills, and all of Europe needed wheat to supplement a series of poor harvests. The United States met that demand for cotton and wheat by expanding agricultural production, facilitated by the loose credit policies of a growing number of lightly regulated state banks. Meanwhile, the Treasury needed revenue to pay off debts from the Louisiana Purchase and the War of 1812, so the government turned to selling land acquired in the Louisiana Purchase. But the increased agricultural demand and easy credit policies led to a speculative real estate boom, particularly in Alabama. So when the Treasury started to pay off its debts, the specie drain caused a painful but necessary contraction and the boom went bust. In this edition of Crisis Chronicles, we describe America’s first great economic crisis.
The Second Bank of the United States An Unlikely Epicenter of the Boom A Likely Target for the Bust Inflationary and Deflationary Concerns
During the recent Great Recession, concern again arose about the risk of deflation, as inflation edged at times below 1 percent. And whenever the slow recovery hits rough patches, concerns about deflation jump back into the headlines. Others continue to speak of inflationary risks because of the unprecedented growth of the monetary base that was a byproduct of the Federal Reserve’s quantitative easing programs. Will deflation or inflation concerns always persist for the economy? Or after two hundred years, has U.S. central banking finally won the war against deflationary and inflationary fears? Tell us what you think. DisclaimerThe views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors. James Narron is a senior vice president in the Federal Reserve Bank of San Francisco’s Cash Product Office. David R. Skeie is an assistant professor of finance at Mays Business School, Texas A&M University. Donald P. Morgan is an assistant vice president in the Federal Reserve Bank of New York’s Research and Statistics Group. What was the economic collapse in 1819?In 1819 a financial panic swept across the country. The growth in trade that followed the War of 1812 came to an abrupt halt. Unemployment mounted, banks failed, mortgages were foreclosed, and agricultural prices fell by half. Investment in western lands collapsed.
What caused the 1819 depression?The Panic of 1819 and the accompanying Banking Crisis of 1819 were economic crises in the United States of America principally caused by the end of years of warfare between France and Great Britain. These two nations had been at war with each other since the 1680s. They finally settled their differences in 1815.
Was the panic of 1819 a depression?The Panic of 1819 was the first great economic depression of the United States. The country witnessed robust economic activity during the post war period and the rigorous developmental activity spurred the American economy.
What was the Panic of 1819 in simple terms?The Panic of 1819 was the first widespread and durable financial crisis in the United States that slowed westward expansion in the Cotton Belt and was followed by a general collapse of the American economy that persisted through 1821.
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