What Is The Panic Of 1819

The panic of 1819 is the first ever peacetime financial crisis in the United States of America. It started when the Bank of the United States called in the loans to the private western banks that were using unconventional practices. Since the Bank of the United States called in their loans all the state banks were forced to do the same, but when they tried to make land speculators repay they couldn’t do it and the banks failed then the depositors were wiped out.
Conditions were made worse by an increase of large amounts of foreign goods into the american market and the falling cotton market in the south. The reaction mostly depended on where people lived. Northerners thought that this could be avoided in the future by raising high tariffs