Title: An uncertain Economy 1820-1860 < A Historical Perspective on the American Economy < Economy 1991 < American History From Revolution To Reconstruction and beyond
Headings: 
An uncertain Economy 1820-1860
Content: The first signs came in 1835 when crop failures made it necessary to import wheat from Europe. Some importers were frightened by the economic depression and refused to extend credit to customers. In 1836, when the amount of money in circulation was already low, the Treasury issued an order that henceforth land purchased from the government had to be paid for in gold or silver. But these precious metals were in short supply, having been sent abroad to pay for imports. Confidence in the nation's financial system was shaken, even shattered, and Western banks began to close. During this time, English traders could not collect on their sales in America, and many of them went bankrupt. Cotton mills closed in England, and American planters saw their markets disappear. By the summer of 1837, business was paralyzed, and it was not until the early 1840s that a semblance of confidence in business was restored. But periodic economic dislocations, such as "The Panic of 1837," did not curtail rapid U.S. economic growth during the 19th century. Presidents elected after Jackson also came from the West, or were allied to those who reflected rural sentiments, and they shared Jackson's mistrust of central power.