USA HISTORY

Detailed explanation-1: -The panic had several causes, including a dramatic decline in cotton prices, a contraction of credit by the Bank of the United States designed to curb inflation, an 1817 congressional order requiring hard-currency payments for land purchases, and the closing of many factories due to foreign competition.

Detailed explanation-2: -Ultimately Congress passed several laws aimed at helping ease the burden on the Panic of 1819. The Land Act of 1820 ended farmers’ ability to purchase land on credit, but also lowered the requirements of acreage and price per acre to maintain affordability.

Detailed explanation-3: -The financial panic of 1819 hurt many farmers, artisans, and other small businesses, which fueled resentment against the bank and its paper currency when a Congressional inquiry revealed that the institution, in fact, had acted irresponsibly during the crisis.

Detailed explanation-4: -The Panic of 1819 was primarily caused by land speculation and poor banking practices. The economic transformation of the first half of the 19th century resulted in a more equal distribution of wealth among social classes.