Panic of 1819

First major financial crisis in the US

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First major financial crisis in the US

The Panic of 1819 was a significant financial crisis that impacted the American economy from 1819 to 1821. It was triggered by global market adjustments and exacerbated by excessive speculation in public lands and the issuance of paper money. The Second Bank of the United States played a role in the crisis by tightening loans, leading to widespread bankruptcies and unemployment. The Panic of 1819 also fueled popular resentment against banking and business practices, sparking political engagement among Americans.

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1812

War of 1812

After the War of 1812, the United States and Great Britain were diplomatically at peace but economically competing for the same markets.

1815

End of Napoleonic Wars

The end of the Napoleonic Wars in 1815 reduced the demand for American products as European countries no longer relied heavily on American manufacturing and agricultural production.

1816

America's First Great Economic Crisis

In 1816, the United States faced its first major economic crisis due to loose credit policies and a speculative real estate boom, particularly in Alabama. The increased agricultural demand and easy credit led to a bust when the Treasury started to pay off debts, causing a painful contraction.

1817

Europe Recovers from Post-War Harvest Shortages

In 1817, Europe finally recovered from its post-war harvest shortages and began producing bumper crops, leading to a decline in American agricultural prices.

1818-07

Financial Panic Precipitated by Second Bank of the United States

The onset of the financial panic has been variously described as 'triggered', 'pricked', or 'precipitated' by the Second Bank of the United States when it initiated a sharp credit contraction beginning in the summer of 1818.

1818-08

Rejection of State-Chartered Banknotes by BUS Branch Offices

In August 1818, due to dangerously overextended credit, branch offices of the Bank of the United States (BUS) started rejecting all state-chartered banknotes under the direction of William Jones, except for those used for revenue payments to the U.S. Treasury.

1818-10

Demand for Specie Transfer by U.S. Treasury from BUS

In October 1818, the U.S. Treasury requested a transfer of $2 million in specie from the Bank of the United States (BUS) to redeem bonds related to the Louisiana Purchase.

1819-03-02

Arkansas becomes a territory

Arkansas officially became a territory on March 2, 1819, as settlers relocated to states and territories like Ohio, Missouri, and Arkansas.

1820

Land Law of 1820

The Land Law of 1820 was passed by Congress to stimulate the economy during the Panic of 1819. It lowered the price of land to $1.25 per acre and allowed small parcels to be sold, making property ownership more accessible to ordinary citizens.

1821

Relief Act of 1821

The Relief Act of 1821 was enacted to provide relief to those affected by the economic depression of 1819. It allowed Ohioans to return land to the government if they could not afford to keep it, extending the credit period to eight years.

1823

End of Panic of 1819

The Panic of 1819 economic downturn started to subside by 1823, although its effects lingered into the following decades. The global economy shift and increased U.S. exports in 1822 contributed to the recovery from the crisis.

1824

Recovery from Panic of 1819

The nation began to recover from the Panic of 1819 around 1824 after five daunting years of economic hardship. Individuals, businesses, and the federal government were severely affected during this period.

1830

Emigration to Texas

By 1830, over twelve thousand Americans had emigrated to what is now the State of Texas, spurred by the aftermath of the Panic of 1819.

2014-12-05

Crisis Chronicles: The Panic of 1819—America’s First Great Economic Crisis

The post discusses the Panic of 1819, which was the first major economic crisis in America. It provides insights into the causes and impacts of the crisis.

2019-07

Roundtable at the Society for Historians of the Early American Republic

During the July 2019 annual meeting of the Society for Historians of the Early American Republic, a roundtable discussion took place regarding the bicentennial of the Panic of 1819. This event aimed to shed light on the historical significance of the Panic of 1819.

End of the Timeline
Panic of 1819