The 1819 Panic was the first financial crisis in the U.S which brought about a conflict between the members of the Democratic-Republican party. This was because the Northern industrialist wanted high tariffs compared to the southern plantation who were not for the idea. The Panic was the first major peacetime financial crisis in the United States that exacerbated tensions within the Republican Party. <em>The Panic further provoked sectional tensions as the northerners advocated for higher tariffs, unlike southerners who rejected their support for the nationalistic economic programs.</em>
