The Panic of 1857, an economic depression, resulted after the company's New York City offices ceased operations due to bad investments, especially in agriculture-related businesses.
At the conclusion of the war, European farm production resumed and American agricultural exports declined, causing a drop in value of American foodstuffs.
Because of the telegraph, word of the office closure spread quickly and many investors, already shaky over declining markets, caused a financial panic.
[1] Due to the economic decline from failure of the Ohio Life Insurance and Trust Company, the railroad industry and many businesses experienced declining demand for their products.
[citation needed] Railroad workers were laid off and many businesses were shut down.