RECONSTRUCTION 1865 1877
RECONSTRUCTIONS EFFECTS ON AFRICAN AMERICANS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The U.S. Treasury ran out of gold, prompting a run on banks across the country.
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Bad investments by a large banking firm forced the company to declare bankruptcy.
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Several small banks in the South shut down because of postwar inflation.
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The federal government began printing paper money to pay off its war debts.
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Detailed explanation-1: -Key Takeaways. The Panic of 1873 was an economic depression for six years. The depression was caused by an overambitious investment in railroad construction which led to the stock market crash of 1873. Businesses crashed and unemployment increased at an alarming rate.
Detailed explanation-2: -The Panic of 1873 One of the worst happened in 1873 – during the time of the Freedman’s Bank. The panic started with a problem in Europe, when the stock market crashed. Investors began to sell off the investments they had in American projects, particularly railroads.
Detailed explanation-3: -This collapse was disastrous for the nation’s economy. A startling 89 of the country’s 364 railroads crashed into bankruptcy. A total of 18, 000 businesses failed in a mere two years. By 1876, unemployment had risen to a frightening 14 percent.
Detailed explanation-4: -The following year, Congress passed the Specie Resumption Act of 1875, which would back United States currency with gold. Backing American currency with gold helped curb inflation and stabilize the dollar.
Detailed explanation-5: -Historians have traditionally attributed the Panic of 1837 to a real estate bubble and erratic American banking policy. Most speculation concerned western land opened to settlement after Indian removals, but northeastern forests were among the most overvalued holdings.