Title: Industrial Revolution: 1816-1860 | 5-Minute Economist
Headings: Industrial Revolution: 1816-1860
Industrial Revolution: 1816-1860
ECONOMIC PERFORMANCE HISTORY
EPI DATA FOR UNITED STATES: 1816 - 1860

Content: Unfortunately, many banks did not have sufficient gold and silver reserves to exchange for their notes, which led to their collapse, spawning the Panic of 1837 and a depression. Of the 850 banks in the United States, 343 closed, 62 partially failed and the State bank system never fully recovered. Interestingly, Jackson was the only President in history to have virtually retired the national debt during his term, having reduced it to $33,733.05, the lowest since the first fiscal year of 1791. This accomplishment was short lived as falling economic activity caused by the Panic led to budget deficits. The Panic of 1837 as well as other recessions did not curtail rapid U.S. economic growth. Long term demographic growth, expansion into new farmlands and creation of new factories continued. New inventions and capital investment led to the creation of new industries and economic growth. As transportation improved, new markets continuously opened. The steamboat made river traffic faster and cheaper but development of railroads had an even greater effect, opening up vast stretches of new territory for development. Like canals and roads, railroads received large amounts of government assistance in their early years in the form of land grants.