<P> He also revealed this new strategy of "reform not relief," expressing his feeling that, "the government sympathized but could do nothing to alleviate the suffering individuals ." To avoid further financial panics, Buchanan encouraged the United States Congress to pass a law to provide immediate forfeit of a bank's charter in the event that the bank suspended specie payments . Additionally, he asked state banks to keep one dollar in specie for every three issued as paper, and discouraged the use of federal or state bonds as security on bank notes to avoid future inflation . </P> <P> The results of the Panic of 1857 were that the largely agrarian southern economy, which also had few railroads, suffered little, whereas the northern economy took a significant hit and made a slow recovery . The area affected the most by the Panic was the Great Lakes region, and the troubles of that region were "quickly passed to those enterprises in the East that depended upon western sales ." After approximately a year, much of the economy in the North and the entire South had recovered from the Panic . </P> <P> Near the end of the Panic, in 1859, tensions between the North and South regarding the issue of slavery in the United States were increasing . The Panic of 1857 was encouraging to those in the South who believed the North needed the South to keep a stabilized economy and southern threats of secession were temporarily quelled . Southerners believed the Panic of 1857 made the North "more amenable to southern demands" and would help to keep slavery alive in the United States . </P>

What did the panic of 1857 encouraged for the south
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