Investigating the impacts of the Panic of 1819 in Virginia, data regarding the Commonwealth's exports and commodity prices have been generated that may prove of interest to those studying this critical period of the early national economy. In an economy dominated by agriculture, falling commodity prices certainly must have contributed significantly to the deepening of Virginia's depression in the years following the Panic.' The Commonwealth produced a wide variety of staples and was the nation's leading producer of tobacco as well as a major wheat grower.2 Moreover, the export market for these goods was critical for the Commonwealth. For example, in the years 1817 and 1818, Virginia exported 58.9 percent and 67.2 percent, respectively, of the American tobacco inspected for export. Led by an economic downturn in Great Britain, reinforced by recession in Europe, and adversely affected by the operations of the British Corn Laws, the demand for American staples, and particularly the agricultural commodities produced in Virginia, dropped beginning in 1819.4 Chart 1 indicates the movement in United States and Virginia exports for the years 1816-1823. Between 1818 and 1821 the real value of the state's exports fell 36.8 percent compared with a drop of 15.7 percent for the nation as a whole.5 Table 1 provides data for exports (in current dollars) of the nation, the Commonwealth, and the port of Norfolk in the years 1816-1823 and indicates the annual percentage changes in both current and real terms. The downward trend experienced by American and Virginia exports after 1818 is evident as is the impact of the American Navigation Acts that effectively closed the port of Norfolk to international trade, primarily with the British West Indies.6 From contributing 28.7 percent and 45.9 percent of the value of Virginia's exports in 1816 and 1817 respectively, by 1821 Norfolk was providing barely a trickle of goods to foreign markets! One result, stemming from this collapse of the market for Virginia's commodities, was a significant deflation! Chart 2 shows movements in a monthly Richmond commodity price index beginning in January 1816 and continuing through the end of the year 1823. The equal-weighted index9 is based on prices current for six commodities in the Richmond market as reported in the Richmond Enquirer on a date closest to the fifteenth of each month. The six prices used to construct the index include corn, corn meal, wheat, flour superfine, tobacco, and hemp. Although prices of a number of other commodities are reported during this time period, none are sufficiently consistent to be used in constructing the index, and the reports before 1816 are too sporadic to allow an index to be developed.10 The monthly price observations for the six commodities are provided in Table 2 and Chart 3. The most striking feature of price movements during the period is the spectacular drop during 1819 and the continued decline into 1821. From a high of 85.19 in November 1818, the index fell to a low of 44.19 in February 1821, a 48.1 percent decline. To put the Virginia experience in perspective, Chart 4 shows prices in the United States for the period 18 101830. Inflation during the War of 1812 is clearly evident, although it also appears that by the time the Richmond commodity price index begins in January 1816, much of the wartime run up in prices had disappeared from the economy. With the coming of the depression of 1819-1821, prices in the nation begin a long slide that continued, with a break in the mid-1 830s, until the eve of the Civil War. The impact of the 1819-1821 depression appears most clearly in the Warren-Pearson wholesale price index that shows that prices by the end of the depression in 1821 had moved well below their pre-war level. The David-Solar cost-of-living index indicates a less dramatic fall during the crisis following the Panic of 1819, but confirms the long decline in prices from their wartime highs and indicates again that the decline after 1818 brought prices well below their pre-war levels. …
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