Panic of 1857: Run
on the Seamen's Savings Bank
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The
Panic of 1857 for kids
The
national economic depression, caused by the Panic of 1857,
engulfed the country for nearly three years further
increasing tension in the United States which was on the
verge of
American Civil war (1861-1865) over the issue of slavery.
Panic of 1857 for kids: The Collapse of the Ohio Bank
The Panic of 1857 was
sparked by the collapse of a banking institution -
the Cincinnati's Ohio Life Insurance and Trust Company.
The New York branch of this bank folded on August 24,
1857 and the newly established
Telegraph system
instantly carried this news right across the nation.
Newspapers carried the story, people panicked and tried
to get their money, and other banks began to collapse.
The picture depicts the run on the Seamen's savings
bank.
Causes of the
Panic of 1857
The causes of the Panic of 1857 were:
● People
became aware to the financial crisis due to the publicity
surrounding the closure of the Ohio bank
● The value
of land in the west fell, the number of migrants decreased, and
this caused financial problems with the railroads
● Railroad
securities (stocks) lost their value
● Over
expansion: Important railroad lines went bankrupt refer to
Railroads in
the 1800s
● Banks that
financed the railroads closed - there were 'runs' on banks and a
squeeze on credit
●
Wheat Prices crashed: The end of the Crimean War (October 1853 –
February 1856) saw the return of men to their homes and an
increase in farm produce. This led to a decline in Europe's
purchase of agricultural products in the United States. The
price of wheat crashed seriously hitting the economy of the
Northern states where wheat was being produced in vast
quantities due to the recent invention of the
Cyrus McCormick reaper
Effects of the
Panic of 1857
The Panic of 1857
●
Foreclosures and Bankruptcies of railroads, banks and companies
●
Unemployment soared
● Tension in
the nation increased
● The Panic
of 1857 had a greater effect in the northern states
● The
Southern states believed that the nation were now strongly
dependent on their economy and would become more amenable to the
needs of slave owners
● The Panic
of 1857 blighted the presidency of James Buchanan
● It was one of the
Causes of the Civil War
The
Panic of 1857 for kids
The Panic of 1857
was one of a series of financial crisis to cripple
the economy of the United States - refer to the
Panic of 1819,
the
Bank War
and the
Panic of 1837
for additional facts and information.
Panic of 1857 for kids - President James Buchanan Video
The article on the Panic of 1857 provides an overview of one of the Important issues of his presidential term in office. The following
James Buchanan video will
give you additional important facts and dates about the political events experienced by the 15th American President whose presidency spanned from March 4, 1857 to March 4, 1861.
Panic of 1857
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Interesting Facts about Panic of 1857 for kids and schools
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Definition of the Panic of 1857 in US history
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The Panic of 1857, a Important
event in US history
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James Buchanan Presidency from March 4, 1857 to March 4, 1861
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Fast, fun info about the Panic of 1857
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Foreign & Domestic
policies of President James Buchanan
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James Buchanan Presidency and
the Panic of 1857 for schools,
homework, kids and children
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