From 65438 to 0836, the 7th President of the United States, andrew jackson, closed the federal bank and transferred the funds to the state banks, and the management system of the federal bank in the United States began to show a declining trend. Thus, the "Free Banking Law" was born, which greatly simplified the application procedures of state banks, but the subsequent fraud also occurred from time to time. From 65438 to 0837, after Martin Van Buren became president, the situation became worse and worse. Due to the loss of credit, banks closed down one after another, and thousands of people lost their land. As a result, the United States entered the economic crisis for five consecutive years.
1857 economic crisis is the first general overproduction crisis with worldwide characteristics in the history of world economy. This crisis is also the first one that started in the United States instead of Britain. Because Britain has invested heavily in American railway construction, the bankruptcy of American railway speculation has also caused great shock to Britain. After the economic crisis of 1847 ended, the most important feature of the cyclical upsurge from 1850 was the rapid expansion of world trade. The average annual growth of world trade in the 1950s of 19 was twice that of the previous 20 years.