In response to this event, August Belmont established his first business and decided to remain in the United States.
In response to this event, August Belmont established his first business and decided to remain in the United States. The Brown Shipley company survived this event only because it received a massive loan from the Bank of England. The collapse of German Briggs and Co. in New Orleans is the traditional start to this event. A contributing factor to this event was the passage of the Distribution Act. That act required the federal government to distribute the budget surplus to states, which moved money from eastern banks to western banks. In response to this event, Congress created the short-lived Sub-Treasury system. Economic historians consider this event to have been sparked by higher interest rates in Britain, which led to a fall in cotton prices that destabilized the American economy. The traditional view of this panic is that it was caused by deflation as a result of Levi P. Woodbury's enforcement of a provision that limited the means by which one could purchase land. For 10 points, name this economic panic frequently blamed on the Specie Circular.
In response to this event, August Belmont established his first business and decided to remain in the United States.
Panic of 1837 [or Panic of 1837 after "panic" is read]