During the mid-1830s, the price of which commodity skyrocketed and then crashed, contributing to the panic?
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Correct answer: Cotton
Cotton was the backbone of the U.S. export economy. High cotton prices encouraged land speculation in the South; when prices collapsed due to oversupply and British credit tightening, it ruined many planters and their creditors.
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More Panic of 1837 questions
- What happened to the Independent Treasury Act after the Whigs took power in 1841?
- The Specie Circular, issued by the Jackson administration in 1836, required that public lands be purchased using which of the following?
- Which of the following was a primary cause of the Panic of 1837?
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- How did the 'Distribution Act' of 1836 contribute to the financial instability leading up to the Panic of 1837?
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