After The Panic of 1837
After The Panic of 1837, there was no economic balance, with limited trade and little to no economic stability.
The Economic Status of The United States of America:
-Unbalanced trade; overflow of silver income from Mexico -Higher percentage of foreclosure -Higher percentage of failed banks The was too much silver coming into The United States of America from Mexico when The U.S. no longer needed it to pay off their debts to China. |
The Trade Relationships of The United States of America:
-No longer needed Mexico's silver (still traded for it) -All debts to China were paid off -Industrial Revolution replaced most of England's trade Because America had invented the cotton gin, there was no need to trade it to England for the cotton to be cleaned. England was essentially cut out of America's trade and replaced by the cotton gin. |
Relations With Other Countries:
-Mexico still provided silver; there was still trade -Not as much connection to China -Not as much need for trade with England Most of the trade that The United States of America continues to participate in occurs in Mexico, where America receives silver and Mexico receives a variety of products equivalent to the silver. |
Species Circular:
-Still in use afterwards -Useful in that it is national and standard currency -Not helpful in that there is still too much silver in America There is still too much silver in America, but the Species Circular helps to heal the economic pains of 1837 by using the abundance of silver as currency. |