[57][58] Buchanan's letters were not then public; he was, however, seen at his inauguration in whispered conversation with the Chief Justice. When the decision was issued, Republicans began spreading the word that Taney had revealed to Buchanan the forthcoming result. Rather than destroying the Republican platform as Buchanan had hoped, the decision outraged Northerners who denounced it.[59]

Panic of 1857
The Panic of 1857 began in the summer of that year, ushered in by the collapse of 1,400 state banks and 5,000 businesses. While the South escaped largely unscathed, numerous northern cities experienced drastic increases in unemployment. Buchanan agreed with the southerners who attributed the economic collapse to over-speculation.[60]
Reflecting his Jacksonian background, Buchanan's response was "reform not relief". While the government was "without the power to extend relief",[60] it would continue to pay its debts in specie, and while it would not curtail public works, none would be added. In hopes of reducing paper money supplies and inflation, he urged the states to restrict the banks to a credit level of $3 to $1 of specie and discouraged the use of federal or state bonds as security for bank note issues. 