The Panic of 1857 and the Coming of the Civil War

James L. Huston

• Publisher: LSU Press
• Year: 1999
• eBook ISBN: 9780807153598
• Topic: History
• Subtopic: North American History
• Index: History

In the autumn of 1857, sustained runs on New York banks led to a panic atmosphere that affected the American economy for the next two years. In The Panic of 1857 and the Coming of the Civil War, James L. Huston presents an exhaustive analysis of the political, social and intellectual repercussions of the Panic and shows how it exacerbated the conflict between North and South.The panic of 1857 initiated a general inquiry between free traders and protectionists into the deficiencies of American economic practices. A key aspect of this debate was the ultimate fate of the American worker, an issue that was given added emphasis by a series of labor demonstrations and strikes. In an attempt to maintain the material welfare of laborers, northerners advocated a program of high tariffs, free western lands, and education. But these proposals elicited the opposition of southerners, who believed that such policies would not serve the needs of the slaves system. Indeed, many people of the period saw the struggle between North and South as an economic one whose outcome would determine whether laborers would be free and well paid or degraded and poor.Politically, the Panic of 1857 resurrected economic issues that had characterized the Whig-Democratic party system prior to the 1850s. Southerners, observing the collapse of northern banks, believed that they could continue to govern the nation by convincing northern propertied interests that sectionalism had to be ended in order to ensure the continued profitability of intersectional trade. In short, they hoped for a marriage between the Yankee capitalist and the southern plantation owner.However, in northen states, the Panic had made the Whig program of high tariffs, a national bank, and internal improvements popular with distressed members of the community. The country's old-line Whigs and nativists were particularly affected by the state of economic affairs. When Republicans moved to adopt a portion of the old Whig program, conservatives found the attraction irresistible. By maintaining their new coalition with conservatives and by exploiting the weaknesses of the Buchanan administration, the Republicans managed to capture the presidency in 1860.No other book examines in such detail the political ramifications of the Panic of 1857. By explaining how the economic depression influenced the course of sectional debate, Huston has made an important and much-needed contribution to Civil War historiography.

Index

Abbott, Nehemiah, 189

Abolitionists: and Republicans, 11

and banking, 58–59

and labor, 102–103

Adrain, Garnett B., 148

Agricultural college issue, 113, 128, 192, 195, 203, 239, 248, 266

Agriculture, 3–4, 18–19, 30–32, 33–34, 210, 211–14. See also Breadstuffs; Foodstuffs; Wheat; Cotton

Alabama, 87, 235

Alley, John B., 229–30

American party. See Know-Nothings

American system, 72, 188, 222

Appleton, Nathan, 38

Arnold, Jared, 102

Ashmore, J. D., 54

Atkins, John, 122

Bailey, Gamaliel, 92, 103

Bankers, 2–3, 15, 16, 17–18, 19, 21–22, 24, 35, 37, 40, 211

Bank of England, 43

Bank of Pennsylvania, 17

Bankruptcy law, 114, 115, 118

Banks: early practices of, 1–3

and Panic of 1857, pp. 15–24, 262

public attacks on, 28, 35, 37–42, 44–47

and state activity, 53–58

economic thought on, 69–70, 71–72, 77

in 1859–60, pp. 210–11

Banks. Nathaniel P., 44, 45, 48, 52, 120

Bannan, Henry, 29

Bates, Edward, 241

Bell, John, 117, 132, 236, 250

Benjamin, Judah, 181

Bennett, James Gordon, 36, 179, 180, 182, 253, 255

Bigelow, John, 241

Bigler, William, 111–12, 134, 140, 148, 150, 181, 184

Black, Jeremiah S., 113

Blacks, 6, 7, 13, 93–94

Blaine, James G, 267

Boston, 2, 17

Boteler, Alexander R., 234, 250, 255

Boutwell, George S., 44

Bowen, Francis, 73, 92, 103–104, 105, 107

Boyce, William, 112, 135, 206

Brace, Charles Loring, 102

Bread riots: in 1857, pp. 25–27

and public opinion, 79–81, 83, 97–98, 99, 108, 122, 126. See also Labor

Breadstuffs, 5–6, 31–32, 34, 210, 213–14, 253, 262. See also Foodstuffs; Wheat

Breckinridge, John C., 236

Bright, Jesse D., 174

Brown, Aaron V., 113, 176

Brown, David S., 49–50

Brown, John, 221, 233, 240, 243

Brown, Joseph E., 54, 55, 86

Brownlow, William G., 80, 86, 90

Bryant, William Cullen, 44, 91, 149, 229, 241

Buchanan, James: early presidency of, 12

and banking issue, 57

cabinet, 113

and Panic of 1857, p. 114

and economic issues in 1858, p. 129

and federal finances, 130

and elections of 1858, pp. 139–40, 145, 147, 151, 153, 166–67, 171–72

Lecompton policy, 174

and Cuba, 175, 177–78

and economic issues in 1859, pp. 174, 175, 184, 191, 192, 193, 205

and economic issues in 1860, pp. 247–49

and election of 1860, p. 254

mentioned, 42, 166, 232

Burke, Andrew, 148

Business cycles, 5

Businessmen, 33, 218, 223, 253, 263, 268

California, 11, 36, 151, 256

Call loans, 21,210–11

Cameron, Simon, 112, 133–34, 136, 241–42, 244, 249

Campbell family, 21–22

Campbell, Lewis D., 149

Campbell, William B., 21

Camphill, George, 26

Carey, Henry Charles: protectionist theory of, 73–78

and abolitionism, 91, 92

view of Ricardo and Malthus, 104–105

and wages, 106, 107

and politics, 135, 136, 145, 187, 242, 249

mentioned, 119,222

Carey, Mathew, 73

Carroll, Charles H., 71, 72

Cass, Lewis, 113

Catholic church, 9, 155

Central America, 16

Chaffee, Calvin, 189

Chandler, Zachariah, 132

Chase, Salmon P., 44, 47–48, 50, 52, 233, 241, 244

Chicago, 27

Child, Lydia Maria, 25

Children’s Aid Society, 102

Claiborne, John, 124

Clark, Edward, 17–18

Clay, Clement, 128, 133

Clay, Henry, 43, 72, 73, 155, 222, 244

Clearinghouse association. See New York clearinghouse association

Cleveland Disunion Convention, 58

Clingman, Thomas L., 170

Coal, 29, 211, 212

Cobb, Howell: and Panic of 1857, pp. 16–17, 23

cabinet, 113

and tariff and banks in 1857–58, pp. 114–16

and federal finances in 1858, pp. 116–17, 129–30, 137–38

and finances in 1858–59, pp. 174, 175–76, 177, 180, 184, 193, 205

and election of 1860, p. 250

Cobb, W. R. W, 128

Collamer, Jacob, 136

Colton, Calvin, 73

Colwell, Stephen, 73, 103, 106

Commerford, John, 102

Congress, 34th, 3rd Sess., 12

Congress, 35th, 1st Sess.: and Panic of 1857, pp. 117–18

and tariff, 119–20, 132–33

and economic sectionalism, 120, 128

and unemployment question, 119–20, 121–22, 132–33

and Lecompton issue, 116, 121–27

Congress, 35th, 2nd Sess.: and tariff, 179–88, 204–208

and Cuba, 175, 178–79, 181, 182

and retrenchment and finance, 189–92

and Pacific railroad, 190–91

and shipping subsidies, 190

homestead and land policy of, 191–92

Congress, 36th, 1st Sess.: and corruption, 245

and finances, 245–46

and tariff, 246–47

homestead act of, 247–48

Connecticut, 57, 253

Conservatives. See Whigs; Know-Nothings

Constitutional Union party, 234–35, 239, 243, 250, 251

Cooke, Jay, 17

Cooper, Mark A., 222

Corporations, 36

Corruption issue, 241, 242, 245–46

Cotton: and slavery, 3, 6

prices of in 1857, p. 18

recovery of in 1858, pp. 33–34

and southern opinion, 1857–58, pp. 60, 62–64, 255–56

and prosperity, 1859–60, pp. 211–12

political use of, 216–17, 219, 223–24

mentioned, 75, 122, 125

Cotton Supply Association, 63–64

Covode, John, 132–33, 136

Cragin, A. H., 190

Crawford, Martin J., 180, 183

Crimean War, 5, 34, 262

Crittenden, John J.: and republicanism, 89–90

and tariff and unemployment, 117, 119, 132

and election of 1860, pp. 232, 234

Cuba, acquisition of, 177–79, 182, 186, 236

Curry, Jabez L. M., 122

Curtin, Andrew, 242, 249, 257

Davis, David, 242

Davis, Henry Winter, 180

Davis, Jefferson, 111, 174, 189–90

Democratic party: and southerners, 7–8

and slavery issue, 10

and banking issue, 35, 39, 41–42, 47–49, 54, 57–58

and election of 1857, pp. 47–48, 49, 50, 52–53

economic thought of, 67, 109

and Congress 1857–58, pp. 111–13, 127, 128, 132, 133

and election of 1858, pp. 139–41, 141–43, 147–51, 152–53, 154, 156–58, 162–63, 166–68, 169, 172

and Congress 1858–59, pp. 173–74, 180–86, 188, 189, 193, 194–95, 204–208

and labor, 220, 225–26, 228—29

and nonintercourse movement, 223, 224

and conventions of 1860, pp. 231, 233, 235–36

and Congress 1859–60, pp. 247, 248–49

and election of 1860, pp. 250–51, 253–54, 255, 256–58, 260

and economic issues, 263, 264–66, 267

Deposits. 3, 21, 71–72

Dewart, William, 193

Dix, John A., 169

Dixon, James, 117

Douglas, Stephen A.: and slavery issue, 10

leadership role of, 111–12, 121

and election of 1858, p. 139, 141, 151, 153

split with Buchanan, 174

and tariff issue, 181–82

and election of 1860, pp. 232, 233, 251, 252, 254, 255

mentioned, 138, 242

Dowdell, James F., 180

Dred Scott court case, 12–13, 50, 141

Dubois, Jesse K., 45

Economic issues, 11, 64–65, 67, 120–21, 142, 143, 194–208, 244–45, 247–49, 251–52, 261–62, 263–68. See also Agricultural college issue; Fishing bounties; Homestead issue; Internal improvements; Pacific railroad issue; River and harbor improvements; Tariff

Economy: in 1858, pp. 28–34

in 1859–60, pp. 210–16

Education and free labor, 8, 108, 109–110, 192, 227, 229, 230, 274

Election of 1857, pp. 47–53

Election of 1858: and Democratic party, 139–41, 147–51

in Pennsylvania, 140, 143–51, 153–66

and Republican party, 141, 144–47

general economic issues in, 142–43

Kansas and Lecompton issues in, 141–43, 144, 146, 147, 152, 153, 157, 162, 168–69

tariff issue in, 142, 144–47, 155, 156, 168–69

and Know-Nothings, 153, 155–56, 160, 162–63

results of, 151–66

southern reaction to, 169–72

Election of 1860: and Constitutional Union party, 232, 233–35, 236–37, 243–44, 250, 251, 256, 257

role of Pennsylvania in, 231–33,240–51

Democratic convention, 235–36

Republican convention, 237–43

Republican campaign, 249–50, 251–52

Breckinridge Democracy campaign, 250–51

Douglas Democracy campaign, 251, 253

economic issues in, 251–54

and question of secession, 255, 260

and fusion attempts, 256

results of, 254–60

England, 4, 31, 34, 63, 75, 105, 106

English, William, 127

Erie Canal, 56

Europe, effect on U.S. economy, 5, 19, 31, 34, 211, 213, 253, 262

Everett, Edward, 35, 237

Fessenden, William Pitt, 112, 117

Field, David Dudley, 48

Finance. See Banks

Fire-eaters, 60, 219

Fishing bounties, 127, 128, 129, 132, 177, 252

Fitzhugh, George, 82–83, 87, 91, 92, 93

Florence, Thomas, 183

Floyd, John B., 113, 176

Foodstuffs, 5. See Breadstuffs

Foreign trade, 5, 14, 210, ...

Table of contents

• Cover
• Title Page
• Copyright Page
• Dedication
• Contents
• Tables
• Preface
• Acknowledgments
• One / A Pensive Nation
• Two / Panic Stalks Wall Street
• Three / Public and Political Reactions
• Four / Economic Thought and the Panic of 1857
• Five / Two Panics in Congress
• Six / The Elections of 1858
• Seven / A Retrenchment Congress
• Eight / Economic Resurrection and the Rights of Labor
• Nine / The Election of 1860
• Ten / Conclusion
• Appendixes
• Bibliography
• Index