Episode 1 of 3
Credit Contraction
- When
- August 1818
- Where
- Philadelphia
- Part of
- Panic of 1819 begins
The Second Bank initiated a sharp credit contraction in summer 1818, rejecting state banknotes in August.
The Second Bank of the United States initiated a sharp curtailment in loans by its western branches beginning in 1818. In August 1818, with credit dangerously overextended, branch offices began to reject all state-chartered banknotes under the direction of William Jones.
Sources
- Panic of 1819 Wikipedia, revision of 2026-07-01
Machine-drafted from the cited Wikipedia passages and checked by a reviewing model, not by a human editor. Every passage cites the revision it was written from; dates and places follow those passages.