Unformatted text preview: Nathan Ellis April 19, 2005 AP US History Free-write Disagreements in economical, political and social issues all contributed to the problems that occurred during the 1820s in the North and South, as well as the East and the West involving sectionalism. Leading up to the 1820s, the country’s banking system was very shaky. Wild cat banks were spread throughout the country and caused inaccurate and inconsistent currency that caused problems for the economy. The west’s economy revolved around the buying and selling of land. This meant that in order to have a booming economy, the west pushed for inflation in order to sell the land at higher prices than bought for. The down side to inflation, however, is that for nearly any other type of business, inflation means loss, not gain, causing sectionalism between the East and the West. When the panic of 1819 occurred due to the Bank of the United States calling in loans from the wild cat banks, there was much less currency in circulation, making it...
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- Fall '05
- Slavery in the United States, American Civil War, wild cat banks