Debt

Insolvency and the War of 1812

Most studies of the economic impact of the War of 1812 focus on early economic growth including manufacturing, shipbuilding, and canal and road improvements, and later issues of economic decline including the failure of the First Bank, decline of-specie supply, and issuance of Treasury Notes. These macroeconomic studies target such things as the inadequacy of the banking system, depreciation, inflation, the depression beginning in 1815, the Panic of 1819, and subsequent recessions of the 1820s.

Insolvent Debtor Petitions of Cumberland County

“Pressure of the times.” “Scarcity of money.” “Scarcity of work.” “Persistence of creditors.” “Family sickness.” “Low wages.” “Unemployment.” “Bought high and had to sell low.” Are these familiar phrases heard in the last couple of years? Yes. But they are also verbatim phrases found in petitions for insolvency to the Cumberland County courts from 1750-1860 by debtors who found themselves arrested on a judgment for debt.