Fueled by wild speculation in land prices, the economy of Minnesota Territory became overheated. This speculative bubble burst in July when banking failures in the East began to spread panic in the West. The resulting crash in land values caused credit to dry up in Minnesota. Local banks closed and other business failed as well. The economy of Minnesota did not improve until the Civil War.*
Father, how often has this happened in our history as human beings? How often has money, property, or wealth been manipulated to bring an otherwise peaceful people to war? Lord, we seem immune to recognize the inner causes of these type of panics and economic downturns; we want what we do not have. Will You forgive us our desire for easy money? Will You forgive the greed of the banks involved: Eastern or Western or foreign?
Will You wipe out the painful judgments of our states’ debtors towards these banks, and their unforgiveness of debt? Will You forgive us for being seduced by the spirit of speculation to the detriment of our brothers and sisters? It seems there is a perpetual battle between those who value the land as a home that sustains life and those who view it only as a profitable commodity. Lord, will You give balance to our judgments of the land, and free our land of the curses we have committed against it?
*Note – PrayThroughHistory uses the timeline located for several years at the Minnesota Historical Society Web site, at this URL: mnhs.org/about/dipity_timeline.htm .