Title: Panic of 1819 - Wikipedia
Headings: Panic of 1819
Panic of 1819
Contents
Post-war European readjustments and the American economy: 1815–1818
Unregulated banking and the imperatives of Republican enterprise
Resurrection of the Bank of the United States
The "American System"
Astor, Girard, Parish
Neofederalist expectations for the central bank
Prelude to panic: 1816–1818
Setbacks and compromises for the SBUS
SBUS branch office lending and the frontier land boom
Panic "precipitated"
BUS reaction to the Panic
Culpability of the BUS in the Panic
Responses to the crisis
Long-term impacts
Economic interpretations
Notes
See also
References
Cited in footnotes
Further reading
External links

Content: A three-part program dubbed the American System, incorporating some of the Hamiltonian projects championed by the Federalists, proposed "to create a stable economy through a centralized banking system, stimulated by an ever widening web of transportation and communication, through which domestic manufactures could eventually reach all parts of the Union". Advocates of the American System called for a protective tariff to encourage manufacturing, a federally funded program for internal improvements and a revival of the First Bank of the United States to regulate finance. Astor, Girard, Parish
In the crucible of the War of 1812, the Treasury of the United States had been compelled to offer $16 million in government war bonds in order to stave off bankruptcy due to military costs and wartime loss of revenue. Financier Stephen Girard, business magnate John Jacob Astor and merchant David Parish bought up these government securities and rescued the nation's credit. Through their influence, and in alliance with Republican Congressmen John C. Calhoun and Henry Clay, they sought to augment their investment by proposing that the securities be exchangeable for stock in a new central bank, the Second Bank of the United States (SBUS). Secretary of State James Monroe supported the new bank initiative, wishing to bind these highly regarded and pro-Republican business figures to government financial operations. Republicans in the South and West joined with monied interests in the mid-Atlantic states. Pro-SBUS Congressman John C. Calhoun argued forcefully that the federal government had a constitutional obligation to regulate bank credit as part of the national money supply. In January 1816, he introduced a bill of incorporation in the House of Representatives for a government bank (which would become the Second Bank of the United States). The measure was passed by Congress and signed by President James Madison in April 1816.