The panic was largely caused by overexpansion in the railroad and banking industries, which led to a financial crisis. However, the southern economy was largely unaffected due to its reliance on cotton, which remained in high demand during this time. This strengthened southern confidence in their cotton economy and also fueled calls to expand slavery and the cotton trade.

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The Panic of 1857

Question 55

Multiple Choice

The Panic of 1857:

A) was the worst depression in American history
B) ended sectional bickering
C) caused church attendance to decline
D) was triggered by the violence in Kansas
E) strengthened southern confidence in its cotton economy

Correct Answer: