Pennsylvania and New York
AT THE TIME of the Panic, the Middle Atlantic and New England states of the Northeast had the most sophisticated and diversified economies in the country.!This highly commercialized area also had the highest proportion of urbanized population. In 1840 about 18 or 19 per cent of the northeasterners were city dwellers, as compared with the Southeast, which ranked second, where 8 per cent were city dwellers.1
New York and Pennsylvania deserve special attention. They were the most important states in the section, with Philadelphia and New York City serving as the financial and commercial capitals of the nation. Furthermore, these two states, along with Virginia, had provided the key support for the Jeffersonian coalition as well as for the development of the Jacksonian alliance. New York and, to a lesser degree, Pennsylvania have been treated in great detail by historians, and indeed the complexity and intricacy of their economic and political institutions deserve thorough and careful analysis. For the purpose of this work, however, a summary treatment is given here to place the two states in proper perspective with the other states of the northeastern section, as well as with the other states of the Union.
Pennsylvania had a unique position in the country throughout the war that raged between the Jacksonians and the banks, primarily because Philadelphia, as the home of the Second Bank of the United____________________