The panic of 1857 hit hardest among grain growers of the Northwest due to a poor harvest and declining grain prices, resulting in widespread debt and bankruptcy. Answer: D The panic of 1857 stimulated northern demands for lower tariff rates as it was believed that high tariffs had contributed to the economic downturn by reducing foreign demand for American goods.

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The Panic of 1857

Question 49

Multiple Choice

The panic of 1857

A) was caused by overexportation of southern cotton.
B) hit hardest among grain growers of the Northwest.
C) finally brought southern congressmen to support free homesteads.
D) stimulated northern demands for lower tariff rates.
E) demonstrated the economic dominance of the North.

Correct Answer: