SEPTEMBER 12, 1857 -- STEAMSHIP CENTRAL AMERICA SINKS

1857 --  STEAMSHIP CENTRAL AMERICA SINKS
The steamship had a million dollars in gold and silver onboard. It caused the Ohio Life and Trust Company to fail and sparked the Financial Panic of 1857 since money was backed by gold. Under such a metal-based money system, the less gold and silver, the fewer dollars in circulation. The fewer dollars, the less economic transactions occur, resulting in less production and more unemployment.