Title: 1800-1860: Business and the Economy: Overview | Encyclopedia.com
Headings: 1800-1860: Business and the Economy: Overview
1800-1860: Business and the Economy: Overview
1800-1860: Business and the Economy: Overview

Content: Economic Instability. U.S. cities during the first half of the nineteenth century also became banking centers that financed the commercial development of the West. Although New York remained the principal financial center for the nation, capital flowed in and out of every city. As a result the number of banks multiplied spectacularly. An inconsistent federal banking policy generated many shaky banks and periods of intense inflation. Land speculation, a longtime staple of American business, further fueled chronic instability, even when the federal government directed its course. Panics that produced economic depressions occurred in 1819, 1837, and 1857. The West was far from immune to these economic slumps; in fact, with land speculation and poor banking, the region helped produce them. Hispanic Influences.