::Panic of 1857

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Bank run on the Seamen's Savings' Bank during the panic of 1857

The Panic of 1857 was a financial panic in the United States caused by the declining international economy and over-expansion of the domestic economy. Because of the interconnectedness of the world economy by the 1850s, the financial crisis that began in late 1857 was the first world-wide economic crisis.<ref>See the "Preface" contained in the Collected Works of Karl Marx and Frederick Engels Volume 28 (International Publishers: New York, 1986) p. XIII.</ref> In Britain, the Palmerston government circumvented the requirements of the Peel Banking Act of 1844, which required gold and silver reserves to back up the amount of money in circulation. Surfacing news of this circumvention set off the Panic in Britain.<ref>See note 238 contained in the Collected Works of Karl Marx and Frederick Engels Volume 12 (International Publishers: New York, 1979) p. 669-670.</ref> Beginning in September 1857, the financial downturn did not last long; however, a proper recovery was not seen until the American Civil War.<ref name="Business Cycles and Depressions">{{#invoke:citation/CS1|citation |CitationClass=book }}</ref> The sinking of the SS Central America contributed to the panic of 1857, as New York banks were awaiting a much-needed shipment of gold. American banks did not not recover until after the civil war.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> After the failure of Ohio Life Insurance and Trust Company, the financial panic quickly spread as businesses began to fail, the railroad industry experienced financial declines and hundreds of workers were laid off.<ref name= "A House Divided">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Since the years immediately preceding the Panic of 1857 were prosperous, many banks, merchants, and farmers had seized the opportunity to take risks with their investments and as soon as market prices began to fall, they quickly began to experience the effects of financial panic.<ref name="Business Cycles and Depressions">{{#invoke:citation/CS1|citation |CitationClass=book }}</ref>


Panic of 1857 sections
Intro  Causes  Results  See also  Notes  Bibliography  External links  

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Bank run on the Seamen's Savings' Bank during the panic of 1857

The Panic of 1857 was a financial panic in the United States caused by the declining international economy and over-expansion of the domestic economy. Because of the interconnectedness of the world economy by the 1850s, the financial crisis that began in late 1857 was the first world-wide economic crisis.<ref>See the "Preface" contained in the Collected Works of Karl Marx and Frederick Engels Volume 28 (International Publishers: New York, 1986) p. XIII.</ref> In Britain, the Palmerston government circumvented the requirements of the Peel Banking Act of 1844, which required gold and silver reserves to back up the amount of money in circulation. Surfacing news of this circumvention set off the Panic in Britain.<ref>See note 238 contained in the Collected Works of Karl Marx and Frederick Engels Volume 12 (International Publishers: New York, 1979) p. 669-670.</ref> Beginning in September 1857, the financial downturn did not last long; however, a proper recovery was not seen until the American Civil War.<ref name="Business Cycles and Depressions">{{#invoke:citation/CS1|citation |CitationClass=book }}</ref> The sinking of the SS Central America contributed to the panic of 1857, as New York banks were awaiting a much-needed shipment of gold. American banks did not not recover until after the civil war.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> After the failure of Ohio Life Insurance and Trust Company, the financial panic quickly spread as businesses began to fail, the railroad industry experienced financial declines and hundreds of workers were laid off.<ref name= "A House Divided">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Since the years immediately preceding the Panic of 1857 were prosperous, many banks, merchants, and farmers had seized the opportunity to take risks with their investments and as soon as market prices began to fall, they quickly began to experience the effects of financial panic.<ref name="Business Cycles and Depressions">{{#invoke:citation/CS1|citation |CitationClass=book }}</ref>


Panic of 1857 sections
Intro  Causes  Results  See also  Notes  Bibliography  External links  

PREVIOUS: IntroNEXT: Causes
<<>>