Panic of 1819 (jan 1, 1819 – jan 1, 1823)

Description:

Causes:
- in 1818 2nd bank of us tightened credit that provided to branch banks because they feared an expansion of money supply; some got into a ton of debt and some shut down
- the interconnectedness of the economy wade it more widespread
- in 1816 us banks lent a lot of money to settlers going west
- economic hardships across the country especially on cotton
- at the end of the napoleonic wars agriculture in europe had revied which meant a decline in overseas demand

- states tried to tax the 2nd bank or print their money which led to inflation
- no system for gov. support

- north wanted hight tariffs tha tsouth opposed
- smaller farmers needs were ignores

Effects:
- distrust of feds
- economic panics limit national growth

Added to timeline:

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