<Table> US recessions, Free Banking Era to the Great Depression <Tr> <Th> Name </Th> <Th> Dates </Th> <Th> Duration </Th> <Th> Time since previous recession </Th> <Th> Business activity </Th> <Th> Trade & industrial activity </Th> <Th> Characteristics </Th> </Tr> <Tr> <Td> 1836--1838 recession </Td> <Td>--</Td> <Td> ~ 7000200000000000000 ♠ 2 years </Td> <Td> ~ 7000200000000000000 ♠ 2 years </Td> <Td> - 32.8% </Td> <Td>--</Td> <Td> A sharp downturn in the American economy was caused by bank failures, lack of confidence in the paper currency, tightening of English Credit, crop failures and Jacksonian policy . Speculation markets were greatly affected when American banks stopped payment in specie (gold and silver coinage). Over 600 banks failed in this period . In the South, the cotton market completely collapsed . See: Panic of 1837 </Td> </Tr> <Tr> <Td> late 1839--late 1843 recession </Td> <Td>--</Td> <Td> ~ 4 years </Td> <Td> ~ 1 year </Td> <Td> - 34.3% </Td> <Td>--</Td> <Td> This was one of the longest and deepest depressions of the 19th century . It was a period of pronounced deflation and massive default on debt . The Cleveland Trust Company Index showed the economy spent 68 months below its trend and only 9 months above it . The Index declined 34.3% during this depression . </Td> </Tr> <Tr> <Td> 1845--late 1846 recession </Td> <Td>--</Td> <Td> ~ 1 year </Td> <Td> ~ 2 years </Td> <Td> − 5.9% </Td> <Td>--</Td> <Td> This recession was mild enough that it may have only been a slowdown in the growth cycle . One theory holds that this would have been a recession, except the United States began to gear up for the Mexican--American War, which began April 25, 1846 . </Td> </Tr> <Tr> <Td> 1847--48 recession </Td> <Td> late 1847--late 1848 </Td> <Td> ~ 1 year </Td> <Td> ~ 1 year </Td> <Td> − 19.7% </Td> <Td>--</Td> <Td> The Cleveland Trust Company Index declined 19.7% during 1847 and 1848 . It is associated with a financial crisis in Great Britain . </Td> </Tr> <Tr> <Td> 1853--54 recession </Td> <Td> 1853--Dec 1854 </Td> <Td> ~ 1 year </Td> <Td> ~ 5 years </Td> <Td> − 18.4% </Td> <Td>--</Td> <Td> Interest rates rose in this period, contributing to a decrease in railroad investment . Security prices fell during this period . With the exception of falling business investment there is little evidence of contraction in this period . </Td> </Tr> <Tr> <Td> Panic of 1857 </Td> <Td> June 1857--Dec 1858 </Td> <Td> 1 year 6 months </Td> <Td> 2 years 6 months </Td> <Td> − 23.1% </Td> <Td>--</Td> <Td> Failure of the Ohio Life Insurance and Trust Company burst a European speculative bubble in United States' railroads and caused a loss of confidence in American banks . Over 5,000 businesses failed within the first year of the Panic, and unemployment was accompanied by protest meetings in urban areas . This is the earliest recession to which the NBER assigns specific months (rather than years) for the peak and trough . </Td> </Tr> <Tr> <Td> 1860--61 recession </Td> <Td> Oct 1860--June 1861 </Td> <Td> 8 months </Td> <Td> 1 year 10 months </Td> <Td> − 14.5% </Td> <Td>--</Td> <Td> There was a recession before the American Civil War, which began April 12, 1861 . Zarnowitz says the data generally show a contraction occurred in this period, but it was quite mild . A financial panic was narrowly averted in 1860 by the first use of clearing house certificates between banks . </Td> </Tr> <Tr> <Td> 1865--67 recession </Td> <Td> April 1865--Dec 1867 </Td> <Td> 2 years 8 months </Td> <Td> 3 years 10 months </Td> <Td> − 23.8% </Td> <Td>--</Td> <Td> The American Civil War ended in April 1865, and the country entered a lengthy period of general deflation that lasted until 1896 . The United States occasionally experienced periods of recession during the Reconstruction era . Production increased in the years following the Civil War, but the country still had financial difficulties . The post-war period coincided with a period of some international financial instability . </Td> </Tr> <Tr> <Td> 1869--70 recession </Td> <Td> June 1869--Dec 1870 </Td> <Td> 1 year 6 months </Td> <Td> 1 year 6 months </Td> <Td> − 9.7% </Td> <Td>--</Td> <Td> A few years after the Civil War, a short recession occurred . It was unusual since it came amid a period when railroad investment was greatly accelerating, even producing the First Transcontinental Railroad . The railroads built in this period opened up the interior of the country, giving birth to the Farmers' movement . The recession may be explained partly by ongoing financial difficulties following the war, which discouraged businesses from building up inventories . Several months into the recession, there was a major financial panic . </Td> </Tr> <Tr> <Td> Panic of 1873 and the Long Depression </Td> <Td> Oct 1873--Mar 1879 </Td> <Td> 5 years 5 months </Td> <Td> 2 years 10 months </Td> <Td> − 33.6% (− 27.3%) </Td> <Td>--</Td> <Td> Economic problems in Europe prompted the failure of Jay Cooke & Company, the largest bank in the United States, which burst the post-Civil War speculative bubble . The Coinage Act of 1873 also contributed by immediately depressing the price of silver, which hurt North American mining interests . The deflation and wage cuts of the era led to labor turmoil, such as the Great Railroad Strike of 1877 . In 1879, the United States returned to the gold standard with the Specie Payment Resumption Act . This is the longest period of economic contraction recognized by the NBER . The Long Depression is sometimes held to be the entire period from 1873--96 . </Td> </Tr> <Tr> <Td> 1882--85 recession </Td> <Td> Mar 1882--May 1885 </Td> <Td> 3 years 2 months </Td> <Td> 3 years </Td> <Td> − 32.8% </Td> <Td> − 24.6% </Td> <Td> Like the Long Depression that preceded it, the recession of 1882--85 was more of a price depression than a production depression . From 1879 to 1882, there had been a boom in railroad construction which came to an end, resulting in a decline in both railroad construction and in related industries, particularly iron and steel . A major economic event during the recession was the Panic of 1884 . </Td> </Tr> <Tr> <Td> 1887--88 recession </Td> <Td> Mar 1887--April 1888 </Td> <Td> 1 year 1 month </Td> <Td> 1 year 10 months </Td> <Td> − 14.6% </Td> <Td> − 8.2% </Td> <Td> Investments in railroads and buildings weakened during this period . This slowdown was so mild that it is not always considered a recession . Contemporary accounts apparently indicate it was considered a slight recession . </Td> </Tr> <Tr> <Td> 1890--91 recession </Td> <Td> July 1890--May 1891 </Td> <Td> 10 months </Td> <Td> 1 year 5 months </Td> <Td> − 22.1% </Td> <Td> − 11.7% </Td> <Td> Although shorter than the recession in 1887--88 and still modest, a slowdown in 1890--91 was somewhat more pronounced than the preceding recession . International monetary disturbances are blamed for this recession, such as the Panic of 1890 in the United Kingdom . </Td> </Tr> <Tr> <Td> Panic of 1893 </Td> <Td> Jan 1893--June 1894 </Td> <Td> 1 year 5 months </Td> <Td> 1 year 8 months </Td> <Td> − 37.3% </Td> <Td> − 29.7% </Td> <Td> Failure of the United States Reading Railroad and withdrawal of European investment led to a stock market and banking collapse . This Panic was also precipitated in part by a run on the gold supply . The Treasury had to issue bonds to purchase enough gold . Profits, investment and income all fell, leading to political instability, the height of the U.S. populist movement and the Free Silver movement . Estimates on unemployment vary, it may have peaked anywhere from 8.2 - 18.4% . </Td> </Tr> <Tr> <Td> Panic of 1896 </Td> <Td> Dec 1895--June 1897 </Td> <Td> 1 year 6 months </Td> <Td> 1 year 6 months </Td> <Td> − 25.2% </Td> <Td> − 20.8% </Td> <Td> The period of 1893--97 is seen as a generally depressed cycle that had a short spurt of growth in the middle, following the Panic of 1893 . Production shrank and deflation reigned . </Td> </Tr> <Tr> <Td> 1899--1900 recession </Td> <Td> June 1899--Dec 1900 </Td> <Td> 1 year 6 months </Td> <Td> 2 years </Td> <Td> − 15.5% </Td> <Td> − 8.8% </Td> <Td> This was a mild recession in the period of general growth beginning after 1897 . Evidence for a recession in this period does not show up in some annual data series . </Td> </Tr> <Tr> <Td> 1902--04 recession </Td> <Td> Sep 1902--Aug 1904 </Td> <Td> 1 year 11 months </Td> <Td> 1 year 9 months </Td> <Td> − 16.2% </Td> <Td> − 17.1% </Td> <Td> Though not severe, this downturn lasted for nearly two years and saw a distinct decline in the national product . Industrial and commercial production both declined, albeit fairly modestly . The recession came about a year after a 1901 stock crash . </Td> </Tr> <Tr> <Td> Panic of 1907 </Td> <Td> May 1907--June 1908 </Td> <Td> 1 year 1 month </Td> <Td> 2 years 9 months </Td> <Td> − 29.2% </Td> <Td> − 31.0% </Td> <Td> A run on Knickerbocker Trust Company deposits on October 22, 1907, set events in motion that would lead to a severe monetary contraction . The fallout from the panic led to Congress creating the Federal Reserve System . </Td> </Tr> <Tr> <Td> Panic of 1910--1911 </Td> <Td> Jan 1910--Jan 1912 </Td> <Td> 2 years </Td> <Td> 1 year 7 months </Td> <Td> − 14.7% </Td> <Td> − 10.6% </Td> <Td> This was a mild but lengthy recession . The national product grew by less than 1%, and commercial activity and industrial activity declined . The period was also marked by deflation . </Td> </Tr> <Tr> <Td> Recession of 1913--1914 </Td> <Td> Jan 1913--Dec 1914 </Td> <Td> 1 year 11 months </Td> <Td> 1 year </Td> <Td> − 25.9% </Td> <Td> − 19.8% </Td> <Td> Productions and real income declined during this period and were not offset until the start of World War I increased demand . Incidentally, the Federal Reserve Act was signed during this recession, creating the Federal Reserve System, the culmination of a sequence of events following the Panic of 1907 . </Td> </Tr> <Tr> <Td> Post-World War I recession </Td> <Td> Aug 1918--March 1919 </Td> <Td> 7 months </Td> <Td> 3 years 8 months </Td> <Td> − 24.5% </Td> <Td> − 14.1% </Td> <Td> Severe hyperinflation in Europe took place over production in North America . This was a brief but very sharp recession and was caused by the end of wartime production, along with an influx of labor from returning troops . This, in turn, caused high unemployment . </Td> </Tr> <Tr> <Td> Depression of 1920--21 </Td> <Td> Jan 1920--July 1921 </Td> <Td> 1 year 6 months </Td> <Td> 10 months </Td> <Td> − 38.1% </Td> <Td> − 32.7% </Td> <Td> The 1921 recession began a mere 10 months after the post-World War I recession, as the economy continued working through the shift to a peacetime economy . The recession was short, but extremely painful . The year 1920 was the single most deflationary year in American history; production, however, did not fall as much as might be expected from the deflation . GNP may have declined between 2.5 and 7 percent, even as wholesale prices declined by 36.8% . The economy had a strong recovery following the recession . </Td> </Tr> <Tr> <Td> 1923--24 recession </Td> <Td> May 1923--June 1924 </Td> <Td> 1 year 2 months </Td> <Td> 2 years </Td> <Td> − 25.4% </Td> <Td> − 22.7% </Td> <Td> From the depression of 1920--21 until the Great Depression, an era dubbed the Roaring Twenties, the economy was generally expanding . Industrial production declined in 1923--24, but on the whole this was a mild recession . </Td> </Tr> <Tr> <Td> 1926--27 recession </Td> <Td> Oct 1926--Nov 1927 </Td> <Td> 1 year 1 month </Td> <Td> 2 years 3 months </Td> <Td> − 12.2% </Td> <Td> − 10.0% </Td> <Td> This was an unusual and mild recession, thought to be caused largely because Henry Ford closed production in his factories for six months to switch from production of the Model T to the Model A. Charles P. Kindleberger says the period from 1925 to the start of the Great Depression is best thought of as a boom, and this minor recession just proof that the boom "was not general, uninterrupted or extensive". </Td> </Tr> </Table> <Tr> <Th> Name </Th> <Th> Dates </Th> <Th> Duration </Th> <Th> Time since previous recession </Th> <Th> Business activity </Th> <Th> Trade & industrial activity </Th> <Th> Characteristics </Th> </Tr> <Tr> <Td> 1836--1838 recession </Td> <Td>--</Td> <Td> ~ 7000200000000000000 ♠ 2 years </Td> <Td> ~ 7000200000000000000 ♠ 2 years </Td> <Td> - 32.8% </Td> <Td>--</Td> <Td> A sharp downturn in the American economy was caused by bank failures, lack of confidence in the paper currency, tightening of English Credit, crop failures and Jacksonian policy . Speculation markets were greatly affected when American banks stopped payment in specie (gold and silver coinage). Over 600 banks failed in this period . In the South, the cotton market completely collapsed . See: Panic of 1837 </Td> </Tr> <Tr> <Td> late 1839--late 1843 recession </Td> <Td>--</Td> <Td> ~ 4 years </Td> <Td> ~ 1 year </Td> <Td> - 34.3% </Td> <Td>--</Td> <Td> This was one of the longest and deepest depressions of the 19th century . It was a period of pronounced deflation and massive default on debt . The Cleveland Trust Company Index showed the economy spent 68 months below its trend and only 9 months above it . The Index declined 34.3% during this depression . </Td> </Tr>

The typical u.s. recession is marked by an average economic decline of 4 percent