1857 financial panic

The Panic of 1857 was a financial crisis that started in the United States due to a combination of over-speculation in railroads, declining international trade, and the collapse of a major financial institution, the Ohio Life Insurance and Trust Company. This triggered widespread bank failures and a credit crunch, causing businesses to close and unemployment to rise. The panic spread quickly, leading to a recession that affected both the North and South. It also intensified existing economic tensions in the country, contributing to the factors leading up to the Civil War.