Question

What was the major cause of the panic of 1819?

Answer 1

Banking Policies

Step-by-step explanation:

The major cause of the Panic of 1819 was irresponsible banking policies. The Second Bank of the United States offered bad loans and paper money, then changed to more conservative credit policies, especially in the western states where state loans had been made to land speculators.

Answer 2

Farmers and businesses being unable to pay back money borrowed from banks.