The Panic of 1873 turned Northerners’ heads away from Reconstruction and instead made them focus on their community. The Panic of 1873 was a financial crisis that triggered a depression in America. Between 1866 and 1873, 35,000 miles of new railroad tracks were laid across the country. Bank firms such as Jay Cooke and Company invested heavily in railroad construction and so as other industries. On September 18, 1873, a major panic swept through the nation; Jay Cooke’s firm had closed its doors claiming to be bankrupt. Many other industries and bank firms did the same, causing a disastrous collapse for the economy. This left us with a financial crisis. “Preoccupied with the harsh realities of falling farm prices, wage cuts, unemployment, and labor strikes, the North became less and less concerned with addressing racism in the South. (pbs.org)” As a result, the Ku Klux Klan could still resume their violence against Republicans. Violent conflicts like 1873’s Colfax Massacre occurred and the North didn't have the strength to stop the madness. In return of having their attention on national concerns, it caused Reconstruction to an …show more content…
In 1876, Rutherford. B. Hayes was elected as president, winning against Samuel J. Tilden. The Compromise of 1877 was a compromise granted by Hayes that pulled federal soldiers out of the south. To begin, in 1867, Congress passed the Reconstruction Act,which divided the south into military districts. In order to rebuild the south, they sent federal troops to enforce Reconstruction on southerners. By taking federal troops out of the South, nobody could enforce the restoring of the economy. Thus, causing them to drop Reconstruction and head toward a discriminative society. With Reconstruction gone, America moved in the direction of segregation;“From the late 1870s onward, southern legislatures passed a series of laws requiring the separation of whites from “persons of color” on public transportation, in schools, parks, restaurants, theaters and other locations. (history.com) ” The Compromise of 1877 had caused the death of