Panic of 1857

The Panic of 1857 is a sudden downturn in the economy of the United States that occurs in 1857.

A general recession had first emerged late in 1856, but the successive failures of banks and businesses that characterize the panic begins in mid-1857.

As the overall economic downturn is brief, and the recovery strong, lasting impact is limited.

However, more than 5,000 American businesses fail within a year, and unemployment is accompanied by protest meetings in urban areas.

Eventually, the panic and depression spread to Europe, South America and the Far East.

No recovery is evident in the United States for a year and a half, and the full impact does not dissipate until the American Civil War.