1. Panic Cause Effect Major Players Panic of 1792
Speculation in the stock market. Complete restriction of credit from national bank.
Alexander Hamilton provided thousands of dollars to the struggling bank, averting true crisis. This strengthened Democratic Republican opposition to Federalist monetary policies.
Alexander Hamilton
Panic of 1819
Occurred at the end of the Era of Good Feelings. The Embargo Act of 1812 led to massive speculation, foreclosure and bank failures.
President Monroe refused to spend government money to fix the economy but passed the Land Act of 1820 and Relief Act of 1821 in order to help.
James Monroe
Panic of 1837
Occurred shortly after Jackson’s veto of the bank. His removal of national funds caused national inflation as well as speculation and the massive use of credit .
The Panic of 1837 caused a recession which lasted over 5 years. Martin Van Buren was blamed for the recession, introducing the first Whig president, William Henry Harrison
Andrew Jackson, Nicholas Biddle, Martin Van Buren
Panic of 1873
Caused by overbuilding of national railroads, speculation of land and credit ,
Often considered a Depression, the Panic of 1837 greatly affected both the US and Europe. Many railroads were abandoned or unable to pay workers, leading to large scale strikes.
Rutherford B. Hayes
Panic of 1893
Collapse of railroad overbuilding, run on the gold supply. Sherman Silver Purchase Act, McKinley Tariff
J.P. Morgan lent money to the US to help with the low gold reserve, Coxey’s Army, argument for Bimetallism (Free Silver) revived
J.P. Morgan
Panic of 1907 (Roosevelt Recession)
United Cooper Company attempted to corner the market, collapse of banks and trust companies, fear of trustbusting
John D. Rockefeller and other robber barons deposited money in to failing banks to stop bank runs, J.P Morgan didn’t lend money but stepped in an negotiated the fall of many banks
Teddy Roosevelt, JP Morgan, John D. Rockefeller,
Great Depression
Credit, stock speculation, overproduction of goods, low food and farm prices, large discrepancies in wealth, laissez faire economics
Franklin Roosevelt attempted to end the Great Depression through Keynesian economics and massive government spending. WWII production eventually ended the Depression.
FDR, Herbert Hoover, Huey Long, Frances Townsend, Charles Coughlin, Eleanor Roosevelt