Title: What led to the Panic of 1819? Why were western farmers particularly hard hit by the depression that ...
Post by: Twitchin on Jan 15, 2018
What led to the Panic of 1819? Why were western farmers particularly hard hit by the depression that followed?
What will be an ideal response?
Title: What led to the Panic of 1819? Why were western farmers particularly hard hit by the depression that ...
Post by: doctorfede on Jan 15, 2018
Answer: The ideal answer should include:
The Second Bank of the United States played a major role in triggering the Panic of 1819.
The Second Bank sought to regulate the national economy through loans to state and local banks.
In 1819, the Second Bank clamped down on local wildcat banks that had extended credit to many people who could not repay their loans.
Many western farmers relied on credit from banks and local private lenders.
As a result, the banks crackdown on wildcat banks had a devastating impact on western households.
Ruined by the Panic of 1819, many western farmers developed an abiding hatred of the Bank of the United States and a deep resentment of eastern financiers.
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