Black Friday Panic Of 1873 Essay

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The Panic of 1873 was a nationwide depression that lasted from 1873-1879 which was caused by a series of many different unfortunate events such as the Black Friday Panic of 1869, by the Chicago Fire of 1871, the outbreak of Equine Influenza in 1872, the demonetization of silver in 1873, the overexpansion that arose from the Northern railroad boom, and finally the bankruptcy of a Philadelphia banking company, Jay Cook. On September 24, 1869, two speculators attempted to corner the gold market on the New York Gold Exchange. It was a legendary scandal that rocked the presidency of Ulysses S. Grant, and led to the first step of the economic depression, which became known as Black Friday (also known as the Fisk-Gould Scandal). During the Civil…show more content…
In 1872, Equine Influenza broke out in Scarborough, York and Markham, Ontario on October 1, 1872. Half-way through the month, Montreal, Detroit, most of Canada, and New England were reporting serious cases. By November Ohio, Massachusetts, and South Carolina were reporting cases. Florida and Louisiana were reached by the end of November. The number of sick horses in the United States approached 100% and the mortality rate ranged between 1% and 10%. Most horses were unable to stand and were too weak to pull loads. Every aspect of American transportation was affected by the outbreak; the railroad came to a halt because coal could not be delivered in order to power the locomotives. This outbreak was known to contribute to the destruction of the American Economy and greatly contributed to the Panic of 1873. In 1873, gold became the only metallic standard in the United States. Silver was demonetized and countries including Britain, France, Germany, Russia, Italy, the United States, and many other smaller countries demonetized silver and moved to the gold standard. The silver to gold ratio became 40:1. This destroyed the silver mining industry, and ended the silver mining industry because the United States would no longer make silver dollars. This harmed the silver industry and reduced the domestic money supply in the United States. It also severely
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