A significant factor leading to the Panic of 1819 was the unexpected decrease in the world's demand for the cotton grown in the American South.

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The unexpected decrease in the world's demand for cotton was a significant factor leading to the Panic of 1819, as it caused a decrease in prices and revenue for southern cotton farmers, who were a major sector of the American economy at the time. This led to economic distress and a wave of bank failures and bankruptcies that spread throughout the country.

A Significant Factor Leading to the Panic of 1819 Was