Panic of 1819 (1 jan 1819 ano – 1 jan 1822 ano)

Descrição:

An economic recession caused in part by the Second National Bank. Though part of the corporation's job was to regulate the money issued by the 200 state banks, it instead invested in a speculative bubble caused by trading cotton and grain with Europe and westward expansion. As trade resumed with Europe as part of the end of the War of 1812, European demand for cotton and grain skyrocketed. At the same time, there was high demand for loans for purchasing Western land, causing both the National and state banks to print large amounts of money. When European demand for American goods inevitably went down, the demand for land went with it. Banks called in their loans, which debtors were unable to pay. Unemployment rose, pressuring the federal and state governments to relieve the stress. They responded by prevented banks from calling in their debts, which helped debtors but hurt creditors. The whole ordeal amplified the lack of trust the American people had in banks, something else that would help Andrew Jackson become president.