Panic of 1857

American economic crisis

Disasters & Accidents

Panic of 1857 — Image via Wikimedia Commons or Wikipedia.

Overview

What happened

On April 27, 1857, the SS Central America, a 278-foot steamship, sank in a hurricane off the coast of South Carolina, resulting in the loss of 425 lives...

Date

April 27, 1857

Key people

William Herndon

Why it matters

This article provides a detailed and nuanced account of the sinking of the SS Central America, including the events leading up to the disaster, the tragedy itself, and the aftermath.

What was Panic of 1857?

The Panic of 1857 was a financial crisis in the United States caused by the declining international economy and over-expansion of the domestic economy. Because of the invention of the telegraph by Samuel F. Morse in 1844, the Panic of 1857 was the first financial crisis to spread rapidly throughout the United States. The world economy was more interconnected by the 1850s, which made the Panic of 1857 the first worldwide economic crisis. In Britain, the Palmerston government circumvented the requirements of the Bank Charter Act 1844, which required gold and silver reserves to back up the amount of money in circulation. Surfacing news of this circumvention set off the Panic in Britain.

An illustration of a bank run on Seamen's Savings Bank during the Panic of 1857

Background and consequences

Beginning in September 1857, the financial downturn did not last long, but a proper recovery was delayed until the onset of the American Civil War in 1861. The sinking of SS Central America in September 1857 contributed to the panic, because New York City banks were waiting on its much-needed shipment of gold.

Related on thisDay

SS Central America Sinking — April 27, 1857

425 lives lost as the SS Central America sank in a 1857 hurricane off South Carolina's coast, a devastating disaster that occurred

Sources and further reading

Use the dated article for the day-specific account; use these references to check the event record and explore its wider historical context.

Date article: SS Central America Sinking — April 27, 1857 Wikipedia source

Cite this page

MLA

“Panic of 1857.” thisDay, thisday.info/history/panic-of-1857/. Accessed 19 Oct. 2026.

APA

Panic of 1857. (n.d.). thisDay. Retrieved October 19, 2026, from https://thisday.info/history/panic-of-1857/

Chicago

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