economic crisis of 1857 Flashcards
(7 cards)
effects of the 1857 economic crisis
Collapse of hundreds of American companies and there was mass Northern Unemployment.
Business failures multiplied, crop prices increased drastically, railroads went bankrupt.
In 1858, Immigration dropped to the lowest that it had been in 13 years. The federal treasury ran a deficit for the first time in 10 year.
president buchanans reaction to the crisis
They decided to not involve themselves in economic matters as they felt as though federal intervention would damage both individuals and the country itself. They thought that if the Government left the economy alone, the country’s economic problems would fix themselves.
Northern reaction to the crisis
Northern laborers reacted to Buchanans decision by blaming him for the decline of Northern industry and its unemployable workforce.
how southerners were affected by the crisis
Southerners were not affected as badly as Northerners; however, their cotton and tobacco levels still did drop. They quickly returned to their normal level though. The south’s export economy was also protected from domestic downturns.
Sectional tensions from the crisis
Caused sectional divides as the issue of the Tariff arised again.
Northerners such as Horace Greely argued that the depression was caused by the low tariffs that had been in place since 1846 and were lowered again in March 1857. This encouraged the Republicans to incorporate tariff revision into their platform as they realised they could gain Northern votes.
Republicans hoped to reduce the economic problems by increasing the 1857 duties. Southerners reacted to these attempts by combining with Northern Democrats to defeat the proposed increased duties.
Southerners such as James Hammond concluded from the economic problems that the Southern economy was superior to the Northern economy because they weren’t as badly affected by it as the North. Therefore, they claimed that an economy based on slave power was superior.
Historians views - James Hammond
James Hammond concluded from the economic problems that the Southern economy was superior to the Northern economy because they weren’t as badly affected by it as the North. Therefore, they claimed that an economy based on slave power was superior.
Historians views - Horace Greely
Northerners such as Horace Greely argued that the depression was caused by the low tariffs that had been in place since 1846 and were lowered again in March 1857.
