▁six ▁London ▁and ▁si xty ▁country ▁banks ▁in ▁England . ▁It ▁was ▁also ▁manifest ▁in ▁the ▁mark ets ▁of ▁Europe , ▁Latin ▁America ▁and ▁the ▁United ▁States . ▁An ▁inf usion ▁of ▁gold ▁res erves ▁from ▁the ▁Ban que ▁de ▁France ▁saved ▁the ▁Bank ▁of ▁England ▁from ▁complete ▁collapse . ▁The ▁pan ic ▁has ▁been ▁described ▁as ▁the ▁first ▁modern ▁economic ▁crisis ▁not ▁att rib utable ▁to ▁an ▁external ▁event , ▁such ▁as ▁a ▁war , ▁and ▁so ▁the ▁start ▁of ▁modern ▁economic ▁cycles . ▁The ▁Napole onic ▁Wars ▁had ▁been ▁exception ally ▁prof itable ▁for ▁all ▁se ctors ▁of ▁the ▁British ▁financial ▁system , ▁and ▁the ▁expansion ist ▁mon et ary ▁actions ▁taken ▁during ▁transition ▁from ▁war ▁to ▁peace ▁brought ▁on ▁a ▁sur ge ▁of ▁prosper ity ▁and ▁spec ulative ▁vent ures . ▁The ▁stock ▁market ▁bo om ▁became ▁a ▁b ubble ▁and ▁banks ▁caught ▁up ▁in ▁the ▁eu ph oria ▁made ▁ris ky ▁lo ans . ▁ ▁Bank ▁improvements ▁Se vent y ▁banks ▁failed . ▁The ▁current ▁view ▁puts ▁much ▁of ▁the ▁fault ▁of ▁the ▁crash ▁on ▁the ▁banks ▁for ▁not ▁collect ing ▁quality ▁information , ▁performing ▁in ade qu ate ▁surve ill ance , ▁and ▁not ▁doing ▁simple ▁due ▁dil ig ence ▁on ▁vent ures . ▁The ▁usual ▁list ▁of ▁causes ▁of ▁the ▁crisis ▁are : ▁Latin ▁American ▁deb t ▁issues ▁E ase ▁of ▁issu ance ▁of ▁bank notes ▁from ▁country ▁banks ▁led ▁to ▁un sc rup ul ous ▁partners ▁invest ing ▁in ▁high - ris k , ▁high -