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What was the impact of the panic of 1873?

What was the impact of the panic of 1873?

This resulted in a five year depression. The panic of 1873 was a result of over-expansion in the industry and the railroads and a drop in European demand for American farm products and a drop off of European investment in the US.

How did the panic of 1873 affect the government?

The financial panic of 1873 and the subsequent economic depression helped bring Reconstruction to a formal end. Across the country, but especially in the South business failures, unemployment, and tightening credit heightened class and racial tensions and generated demands for government retrenchment.

What was the most significant outcome of the panic of 1873?

As a result, the Panic of 1873 led to the longest recorded economic downturn in modern history, spanning from October 1873 to March 1879, according to the National Bureau of Economic Research. By 1873, most developed nations in Europe and North America had experienced the transition to industrial capitalism.

How did the panic of 1873 ultimately lead to the rise of the American labor movement?

Mimicking the same progression as its previous growth at the beginning of the nineteenth century, this new labor movement began with the formation of local trade unions. The depression caused by the panic of 1873 continued to hinder the growth of unionism, and national trade unions would not recover for several years.

What was the result of the Panic of 1873 quizlet?

The Panic of 1873 stands as the first global depression brought about by industrial capitalism. It was caused by too many railroads and factories being formed than existing markets could bear and the over-loaning by banks to those projects. the bankers who wanted the gold standard formed.

What was the cause of the economic Panic of 1873?

Economic Panic of 1873 Apache Following the collapse of the banking firm of Jay Cooke there was a large scale fall in stock prices. This resulted in a five year depression. The panic of 1873 was a result of over-expansion in the industry and the railroads and a drop in European demand for American farm products and a drop off…

What was the result of the American Civil War in 1873?

The American Civil War (1861-1865) was followed by a boom in railroad construction. 33,000 miles (53,000 km) of new track were laid across the country between 1868 and 1873, with much of the craze in railroad investment being driven by government land grants and subsidies to the railroads.

How many railroads went bankrupt in the Panic of 1873?

By November 1873 some 55 of the nation’s railroads had failed, and another 60 went bankrupt by the first anniversary of the crisis. Construction of new rail lines, formerly one of the backbones of the economy, plummeted from 7,500 miles (12,070 km) of track in 1872 to just 1,600 miles (2,575 km) in 1875.

What was the impact of the Coinage Act of 1873?

Coinage Act of 1873. This hurt Western mining interests, who labeled the Act “The Crime of ’73”. Its effect was offset somewhat by the introduction of a silver trade dollar for use in Asia, and by the discovery of new silver deposits at Virginia City, Nevada, resulting in new investment in mining activity.