What was a major cause of the Panic of 1819?
1 Answer
Mar 15, 2017
It was caused by the failure of the central bank created by James Madison to carry out the Second Independence War.
Explanation:
The American banking system was very unstable in the early days of the Republic. The charter of the Bank of North America had not been renewed by Jefferson in 1811 and Madison created a new central bank to finance the war effort between 1812 and 1815.
The mass use of paper money that cannot be converted in gold or metal is one of the main reasons.
Rothbard wrote a book about it if you are interested:
