The Panic of 1819, preceded by land speculation, the expansion of public and private banking, easy credit, inflation, and an increase in agricultural exports, was triggered by the credit crunch, the collapse of the export market and the increase in imports. Mortgages were foreclosed and agricultural prices fell by almost half. Investments collapsed and land prices fell. This decline led to land speculation and the expansion of banks and the Second Bank of the United States. Exports of agricultural products and imports of manufactured goods increased. There were widespread foreclosures and bank failures. All of these events ultimately led to the Panic of 1819. The availability of land resulting from the Louisiana Purchase in 1803 contributed to the excessive expansion of land speculation and caused inflation of land values. This purchase doubled the size of the United States by adding an additional 828,000 square miles. The cost per acre was about 40 cents. This entire area later became 15 states. These states were Arkansas, Missouri, Iowa, Oklahoma, Kansas, Nebraska, Minnesota, North Dakota, South Dakota, New Mexico, Texas, Montana, Wyoming , Colorado and Louisiana. Thanks to this purchase, the American population was able to grow and increase. The Federalist favored the sale of large plots of land to wealthy speculators over the sale of small plots to farmers and contributed to the inflation of land values. The Federalists were in control and therefore could determine whatever they wanted regarding land. Thomas Jefferson was willing to spend $10 million on the Louisiana Purchase. However, he spent $15 million, putting the United States $5 million in debt. “In a government founded by the people, who exclusively owns the medium of paper… farmers were not able to repay their loans to the banks. The banks then seized the properties and were unable to sell them. Land prices went down, farmers went bankrupt, banks went bankrupt. The Napoleonic War fueled the growth and expansion of American agriculture; however, the end of the wars contributed to the Panic of 1819. The increase in cheap imports led to business failures, bank closings, and unemployment in the cities. Britain ended the War of 1812 with America and trade increased. Britain's industrial capacity exceeded that of the Americas5. Britain then exported its surplus manufactured goods to America. American factories could not compete with Europe's low labor costs and low goods prices. American imports increased from $12.9 million in 1814 to $151 million in 1816. Businesses were forced to close. Cheap imported products force U.S. manufacturers out of business and lead to unemployment..