The Panic of 1857 had both foreign and domestic roots. The Crimean War (1854–56) had cut off Russian grain from the European market. American exports mushroomed to meet the need. This intensified a surge of speculation in western lands. The decade-long expansion of all economic indices had also produced rapid rises in the prices of stocks and bonds. From 1848 to 1856 the number of banks increased 50 percent and their notes, loans, and deposits doubled. Railroad mileage and capital grew threefold from 1850 to 1857. Textile mills, foundries, and factories ran at full tilt to meet an apparently
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