USA HISTORY

Detailed explanation-1: -In 1819 a financial panic swept across the country. The growth in trade that followed the War of 1812 came to an abrupt halt. Unemployment mounted, banks failed, mortgages were foreclosed, and agricultural prices fell by half. Investment in western lands collapsed.

Detailed explanation-2: -Long-term impacts The Panic brought attention, for the first time, to issues regarding debt-relief policy, as well as poor relief. City and state governments began to more effectively approach the public policy reform issues surrounding the poor; a classification system was also created (able-bodied vs.

Detailed explanation-3: -Ohio returned the two thousand dollars still in dispute. The Panic of 1819 and the Banking Crisis left many Ohioans destitute. Thousands of people lost their land due to their inability to pay off their mortgages.

Detailed explanation-4: -There were three key causes of the Panic of 1819-inflation, public debt from the War of 1812, and the Louisiana Purchase in 1803 by President Thomas Jefferosn. The Panic had a lasting affect on the American banking system and directed attention to the crucial 1819-1821 session of the U.S. Congress.

Detailed explanation-5: -The Panic of 1819 is considered to be the first major economic depression in United States history. The Panic of 1819 was caused in part by land speculation and in part by the Second Bank of the United States’ contractionary monetary policy.