A bank holiday is declared in New…

A bank holiday is declared in New England and New York in October in a vain effort to avert runs on those institutions.

Eventually the panic and depression will spread to Europe, South America and the Far East. (No recovery will be evident in the United States for a year and a half, and the full impact will not dissipate until the American Civil War.)

The Tariff Act of 1857, signed into law in March, had reduced the average rate to about 20%—another reduction that had been warmly greeted in the South and roundly derided in the North.

The tariff is one of several major issues that is dangerously increasing the tension between the two regions.

The South is much less hard-hit than other regions because of the stability of the cotton market.