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High Quality Content by WIKIPEDIA articles! The Panic of 1819 was the first major financial crisis in the United States, which occurred during the end of the Era of Good Feelings. The new nation faced a depression in the late 1780s (which led directly to the establishment of the dollar and, perhaps indirectly, to the calls for a Constitutional Convention), and another severe economic downturn in the late 1790s following the Panic of 1797. In those earlier crises, however, the primary cause of economic turmoil originated in the broader Atlantic economy. These crisis and others that resulted from international conflicts such as the Embargo Act and War of 1812, caused widespread foreclosures, bank failures, unemployment, and a slump in agriculture and manufacturing. However, things would change for the US economy after the Second Bank of the United States was founded in 1816, in response to the spread of bank notes across United States from private banks, due to inflation brought onby the debt following the war.