Chapter 18 7. The international bankers act again to cause the panic of 1857

Due to the closure of the Second Bank of the United States in 1836, international bankers suddenly took action and slammed the metal currency in circulation in the United States, causing a severe economic crisis in the United States that lasted for five years.Although in 1841, agents of international bankers tried twice to restore a private central banking system, but they were unsuccessful. The reason for the improvement of the situation is of course not because of the mercy of the international bankers, but because in 1848, a huge gold mine was discovered in California, USA: San Francisco.For nine years beginning in 1848, the supply of gold in the United States increased at an unprecedented rate. California alone produced half a billion dollars worth of gold coins.Australia also discovered a large number of gold mines in 1851, and the worldwide supply of gold increased from one to one in 1851.Four or four billion shillings soared to three in 1861.Seven or six billion shillings.The flow of metal money in the United States soared from $83 million in 1840 to $2 in 1860.Five or three billion dollars.The great gold discoveries in the United States and Australia broke the absolute control of the gold supply by European financiers.The U.S. government, which is tightly strangling the money supply, took a long breath.The supply of a large amount of high-quality money has greatly enhanced market confidence, and banks have resumed large-scale credit expansion. Many of the most important foundations of national wealth such as important industries, mines, transportation, and machinery in the United States were completed during this golden age. .Seeing that financial containment is difficult to work, international bankers already have new countermeasures.That is, financial control and political division.

Long before the crisis was over, they had begun to absorb high-quality assets in the United States at a low price. By 1853, when the American economy was booming, foreign capital, especially British capital, already owned 46% of the national debt of the United States. Fifty-eight percent of bonds, twenty-six percent of U.S. railroad bonds, thus putting the bridle on the U.S. economy again, and once the central banking system is in place, the U.S. economy is controlled by bankers like the rest of Europe . The international bankers once again performed their stunts, first extending credit vigorously, blowing up the bubble, allowing the people and other industries to desperately create wealth, and then suddenly slammed on the credit brakes, causing a large number of enterprises and people to go bankrupt due to blood loss, and the bankers again Had a good harvest.Sure enough, when the harvest season came, the international bankers and their agents in the United States joined hands to tighten credit again, causing the panic of 1857. To their surprise, the strength of the United States at this time was no longer second Compared with ten years ago, the Panic of 1857 did not hit the American economy hard, and it recovered in just one year.

Seeing that the United States is getting stronger and its finances are becoming more and more difficult to control, instigating a civil war and splitting the United States has become a top priority for international bankers.