Does no ACW mean USG default?

I've been watching "The Gilded Age" from PBS. It says there was a Civil War-era law allowing private loans to USG without Congress' okay, which J. P. Morgan used in 1895 to prevent USG default in the 1893 Panic.

So, the question: if the Civil War never happens, does this law never get passed? Does this lead to default & economic ruin in 1895? Or do the conditions resulting from no Civil War mean the Panic never happens?

I don't care how the Civil War is prevented; handwave it any way you want, providing it doesn't so transform the U.S. as to make the question irrelevant...
 
Part of reason for the potential defalut were the enormous ACW era loans that were taken out. No ACW = smaller loans. Smaller loans = less likely to default. If there were a problem the US Congress would almost certainly pass a law to solve it before it got to that point.
 
Part of reason for the potential defalut were the enormous ACW era loans that were taken out. No ACW = smaller loans. Smaller loans = less likely to default. If there were a problem the US Congress would almost certainly pass a law to solve it before it got to that point.
The program was saying (& IDK) a lot of the gold drain was a product of the Panic: Europeans wanting gold, fewer U.S. exports (in particular after a cotton crop failure). I'm taking from your explanation both of those would remain, but not be critical. (Given TTL weather doesn't change & prevent the crash of the cotton crop, & given the global economy isn't so changed to prevent the European actions...:))
 
The program was saying (& IDK) a lot of the gold drain was a product of the Panic: Europeans wanting gold, fewer U.S. exports (in particular after a cotton crop failure). I'm taking from your explanation both of those would remain, but not be critical. (Given TTL weather doesn't change & prevent the crash of the cotton crop, & given the global economy isn't so changed to prevent the European actions...:))

If the government doesn't have to pay all that interest there is more money floating around.
 
Top