Question

Which of the following led to the Panic of 1819? Select all that apply.

a. Excessive credit on real estate resulting in defaulted loans.
b. There was an increase in American manufacturing during the war along with the c. stress of postwar British competition.
d. The rise and fall of the American farming economy.
e. There was additional threats of attack from both the French and the British.

Answer 1

The Panic of 1819 was caused by excessive credit on real estate, postwar British competition affecting American manufacturing, and the downturn in American agricultural commodity prices. It was not influenced by threats of attack from foreign powers.

Step-by-step explanation:

The factors that led to the Panic of 1819 include a combination of domestic economic policies and international pressures. Specifically:

• Excessive credit on real estate which led to defaulted loans when economic conditions changed.
• An increase in American manufacturing during the war, which subsequently faced stress from postwar British competition as Britain dumped surplus goods at low prices in the US.
• The rise and fall of the American farming economy, with a sharp downturn in agricultural commodity prices, adversely affecting the land's value.

It is important to note that the inflated economic bubble's burst, which caused the Panic, was not due to threats of attack from the French or the British, but was rather economic. Regarding the Second Bank of the United States, its shift to a deflationary policy, requiring repayment of outstanding loans and demanding state banks convert their notes to specie, was a direct response to protect its reserves, not a cause of the Panic. Thus, answer choice e, concerning threats of attack, does not apply here.

Answer 2

The Panic of 1819 was the first significant economic crisis in the United States and led to failed banks, property foreclosures, and widespread suffering in Alabama. The calamity resulted from the declining value of cotton—Alabama's main export crop—as well as other national commodities.
Hope this helped or gave you an idea on what the answer could be.