Panic of 1857

Crimean War in Russia had overstimulated the growing of grain.  The North was hardest hit.  Five thousands businesses failed.  The South enjoyed favorable cotton prices.  A few months before the crash the Tariff of 1857 reduced duties to 20 percent - the lowest since the War of 1812.  Northern Manufacturers blamed the low tariff.  The South thrived from the low tariff and cotton prices.  It gave the South overconfidence in the important of "King Cotton".