Panic of 1857

Panic of 1857:

It was worse psychologically than economically as the panic of 1837. It was caused by the California gold, which inflated the currency and the demands of the Crimean War which had overstimulated the growing of grain. This caused 5,000 businesses to fail within a year and also caused unemployment. The panic hit the hardest among the grain growers of the North while the South enjoyed favorable cotton prices. Financial distress in the North (agriculture) led to demands for free farms of 160 acres and this infuriated the East and the South. Later led Congress to pass the homestead act in 1860, which made public land available for 25 cents an acre but was vetoed by President Buchanan. The Panic also led the North to demand a higher tariff. Resulted in 2 economic issues for the election of 1860: protection for the unprotected and free farms for the farmless.