EssaysForStudent.com - Free Essays, Term Papers & Book Notes
Search

The Crisis of 1819

Page 1 of 6

The panic of 1819

The crisis of 1819 was one of the most critical crises in all American history because it abruptly affected the banks because it left them bankrupt, there were too many generalized embargoes, the agriculture sector deteriorated as well as the manufacturing industry, and Large-scale unemployment and the lack of housing for the people the crisis touched. It was one of the worst disasters ever experienced in the nation, much of that disasters were because the national financial system was beginning and United stated never have had a disaster of such magnitude in their country. The Panic of 1819 was the first major financial crisis also called economic downturn to which the economy of the United States was subject. This crisis occurred at the end of the 19th-century era. This crisis occurred due to the accumulation suffered by the United States due to the war of 1812. The Americans thought that since they were in crisis, the British could help them, but the British in 1818 directed their attention in India because there they had to benefit since the Indians, provided the cotton and stop investing in India would have been a loss for them so they decided to stay there. The abandonment of the British towards the Americans turned out to be the trigger for the panic on a large scale, which eventually led to economic depression. That economic depression began with the drastic fall in land prices in the United States, and that continued for the next three years until 1822. By 1822, the entire economy had come to a standstill, before the government could find out what was happening. The panic of 1819 also known as the plight of 1819 began due to the first world war that affected almost everyone, the crisis of 1819 was one of the worst emergency that could occur in the United States, and that began the first great depression American. The crisis affected many international countries not only united states after the war, the United States exportation increased because of the demand that they had. European demand for U.S products, especially agricultural staples such as cotton, tobacco, and flour, grew so much that they had to stop importing. As the crisis was too much, the federal government offered to sell western lands that they had, feeding the real estate thought that it was covered with bank notes. In 1914 before the Great Depression, Thomas Jefferson warned, "that they will be ruined by the paper as they were by the continental newspaper." Two years after the statements made by Jeffrey, he once again affirmed that "they are under a bank bubble" that would soon explode. Already within the crisis, the Americans thought that the second bank from America would save them from that crisis, but things did not go the way they did. The president of the bank, William Jones, instead of taking measures to fix the currency of the nation, granted large loans that caused the bank to fall into inflation. the crisis was so severe that cartoons were created to represent how the British humiliated the Americans in the illustration made by Charles William that cartoon represents the mockery suffered by the Americans by the British. The cause of the first panic of 1819 was because of the irresponsible monetary policies. In 1816 the bank was restored, and it became much more conservative with, we lent it because the government was upset by the lack of ethics of the state banks. Due to the crisis that was in Europe, Britain demanded that the United States pay them in advance all the debts, in the form of food since the money at this time was not stable and the British could not trust the money. The crisis of 1818 was very different from the previous ones because it had its beginning in the American economic roots. The most seen cause of the crisis was an irresponsible banking system that reigns in the country during this period, with the second bank of the United States. In their attempt to raise the money that the Americans lost in the war, they raised the prices in the U.S economy after the war, and the nationalized banking system gave state banks the power to print money. Without control authority as such, these banks withdrew massive amounts of money in the economy, with no backup of any kind. Because the bank took too much money, that caused inflation in the country leading to the crisis. The Most Disastrous and Never-to-Be-Forgotten Year”: The Panic of 1819 in Philadelphia written by J. David Lehman, where he talks about how the crisis of 1819 affected Philadelphia’s bank, society, and economy. Another effect of the crisis of 1819 was that the farmers lost their farms and the farmers their crops if they did not have to pay the government and many times almost all of them were left homeless because the government snatched everything for lack of payments. Pennsylvania was a state that was also abruptly abused by the panic of 1819 in the book written

Download as (for upgraded members)
txt
pdf
Citation Generator

(2018, 09). The Crisis of 1819. EssaysForStudent.com. Retrieved 09, 2018, from https://www.essaysforstudent.com/History-Other/The-Crisis-of-1819/109810.html

"The Crisis of 1819" EssaysForStudent.com. 09 2018. 2018. 09 2018 <https://www.essaysforstudent.com/History-Other/The-Crisis-of-1819/109810.html>.

"The Crisis of 1819." EssaysForStudent.com. EssaysForStudent.com, 09 2018. Web. 09 2018. <https://www.essaysforstudent.com/History-Other/The-Crisis-of-1819/109810.html>.

"The Crisis of 1819." EssaysForStudent.com. 09, 2018. Accessed 09, 2018. https://www.essaysforstudent.com/History-Other/The-Crisis-of-1819/109810.html.