The depression that began in 1839 ended with an upswing in economic activity in 1843.
The recovery from the depression that followed the Panic of 1837 began in 1843 and lasted until the Panic of 1857.
major events occured just prior to 1871 and 1951, respectively:
President Ulysses S. Grant creates the Civil Service Commission.
The Indian Appropriation Act of 1871 is passed. Tribes will no longer be seen as independent but as wards of the State.
The Coinage Act of 1873 is passed. This act removes silver from the coinage in order to more forcefully advocate for the gold standard.
For the first time since the beginning of the Civil War, the Democratic Party regains control of the House of Representatives.
The Civil Rights Act is passed, which states that no one can be denied equal access to public facilities.
Explanation:
After the expiration of the charter of the Second Bank of the United States, federal revenues were handled by the Independent Treasury beginning in 1846. The Second Bank of the U.S. had also maintained some control over other banks, but in its absence banks were only under state regulation.[157]
One of the main problems with banks was over-issuance of banknotes. These were redeemable in specie (gold or silver) upon presentation to the chief cashier of the bank.[153] When people lost trust in a bank they rushed to redeem its notes, and because banks issued more notes than their specie reserves, the bank couldn't redeem the notes, often causing the bank to fail. In 1860 there were over 8,000 state chartered banks issuing notes. In 1861 the U.S. began issuing United States Notes as legal tender.[169]
Banks began paying interest on deposits and using the proceeds to make short term call loans, mainly to stock brokers.[170]
New York banks created a clearing house association in 1853 in which member banks cleared accounts with other city banks at the close of the week. The clearinghouse association also handled notes from banks in other parts of the country. The association was able to detect banks that were issuing excessive notes because they could not settle.
