Event: Panic of 1819
Brief Description: The boom that followed the end of the war turned to bust in 1819. It is thought to be the first "boom-bust" cycle in American. The Panic of 1819 was brought by heavy speculation, especially in purchase of public lands. This land speculation was encouraged by branches of the Bank of the United States in the south and west, who followed the excessive loan policies of the state banks . Loans were extended by banks who produced much more currency than they could cover with the gold in their vaults. When the Bank of the United States called in outstanding loans from these banks and its commercial customers, the entire credit system collapsed. Land and commodity prices plummeted, resulting in a depression. Many banks failed, including those in St. Louis. Missouri would not have another bank until 1837.
Year: 1819
Decade: 1810 - 1819
Beginning Date: 1819
Ending Date: 1819
Reference
Panic of 1819: A Central Bank Conspiracy
A History of Missouri and Missourians
A New History of Missouri
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