Panic of 1819 and Missouri Compromise

Panic of 1819 and - Panic of 1819 and Missouri Compromise I Panic of 1819 Effected all parts of the nation Big issue behind the Panic was the Bank

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
3/17/10 Panic of 1819 and Missouri Compromise I. Panic of 1819 Effected all parts of the nation Big issue behind the Panic was the Bank of the US A. Bank of the United States The Bank that the government would do business with Bank works by: when local branches need money, they borrow from the National Bank 1. Western Lands They know that western lands will be an economic issue People are purchasing the land by taking out loans from local banks; many people are moving west and taking out loans ^ When the local banks don’t have enough money to cover the loans, they borrow from the National Bank; the bank sees that many people don’t have enough money to cover their movement B. Economic bubble bursts From 1815-1819 American farmers are doing very well because they are selling to the fighting European nations as well as Americans 1819 – many European nations quit fighting and start farming again; so the American farmers who had produced extra goods now have no1 to buy the extra goods 1. Prices of Agricultural Goods Fall They have extra crops that no1 wants to buy This drops the price of the crops Affects mainly western farmers, but some southern farmers as well The Bank of the US sees this problem happening 2. Banks Call in Loans Bank of US calls back the loans to regional banks early ^ This causes local banks to call back their loans early But the farmers don’t have money to pay it back early since the price of crops fell Many default and lose their land, lose everything Hurts northerners because once banks start calling back loans, they also won’t give out new loans; northerner factories would take out
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/11/2012 for the course HIST 111 taught by Professor Onlinecourse during the Fall '08 term at South Carolina.

Page1 / 4

Panic of 1819 and - Panic of 1819 and Missouri Compromise I Panic of 1819 Effected all parts of the nation Big issue behind the Panic was the Bank

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online