Correct. The answer is c. Buffalo was the node that connected the Great Lakes to the Erie Canal, which had been completed in 1825. The canal moved people and goods from the Great Lakes region to New York City, linking the interior of the United States with the broader Atlantic world. As the terminus of the canal, Buffalo was strategically placed to become a boomtown.

Incorrect. The answer is c. Buffalo was the node that connected the Great Lakes to the Erie Canal, which had been completed in 1825. The canal moved people and goods from the Great Lakes region to New York City, linking the interior of the United States with the broader Atlantic world. As the terminus of the canal, Buffalo was strategically placed to become a boomtown.

Correct. The answer is a. Rathbun had so much success with the Eagle Hotel that he built a real estate empire in Buffalo, making him the city’s most successful self-made man. Thanks to all the construction, banks, stores, and transportation systems Rathbun created, he employed thousands of Buffalo citizens—more than one-third of all adult men in the city. When Rathbun’s empire collapsed in 1836, many of his employees were left without work, which sent Buffalo into a severe depression. Rathbun’s story illustrates how the spectacular fortunes (and failures) of individuals in the 1830s could have a broad impact on entire communities.

Incorrect. The answer is a. Rathbun had so much success with the Eagle Hotel that he built a real estate empire in Buffalo, making him the city’s most successful self-made man. Thanks to all the construction, banks, stores, and transportation systems Rathbun created, he employed thousands of Buffalo citizens—more than one-third of all adult men in the city. When Rathbun’s empire collapsed in 1836, many of his employees were left without work, which sent Buffalo into a severe depression. Rathbun’s story illustrates how the spectacular fortunes (and failures) of individuals in the 1830s could have a broad impact on entire communities.

Correct. The answer is b. The Mercantile Agency was the first attempt at establishing a credit rating system for potential borrowers. Lenders who paid the Agency a $50 fee could read about potential borrowers in the Agency’s files, where a businessman’s creditworthiness was assessed according to factors like how much he drank, how often he attended church, and whether he was habitually punctual. These personal traits were understood in the 1840s as indicators of a person’s trustworthiness and reliability, both in terms of personal and business relationships.

Incorrect. The answer is b. The Mercantile Agency was the first attempt at establishing a credit rating system for potential borrowers. Lenders who paid the Agency a $50 fee could read about potential borrowers in the Agency’s files, where a businessman’s creditworthiness was assessed according to factors like how much he drank, how often he attended church, and whether he was habitually punctual. These personal traits were understood in the 1840s as indicators of a person’s trustworthiness and reliability, both in terms of personal and business relationships.

Correct. The answer is d. The U.S. Bankruptcy Act of 1841 was a boon to debtors who could not pay their loans because it provided a legal method for eliminating their debts and paying creditors a small fraction of the money they owed. However, the Act also attempted to shame debtors—and therefore deter future debtors—by printing the names of all people who declared bankruptcy in the newspaper. The reliance on public shaming illustrates the significance of personal reputation to businessmen in antebellum America.

Incorrect. The answer is d. The U.S. Bankruptcy Act of 1841 was a boon to debtors who could not pay their loans because it provided a legal method for eliminating their debts and paying creditors a small fraction of the money they owed. However, the Act also attempted to shame debtors—and therefore deter future debtors—by printing the names of all people who declared bankruptcy in the newspaper. The reliance on public shaming illustrates the significance of personal reputation to businessmen in antebellum America.

Correct. The answer is a. Before the 1840s, and especially in the 1830s, entrepreneurial American businessmen were able to borrow huge sums of money on their reputations and signatures alone. Business law and loan practices in this period enabled fraudulent borrowers to accumulate hundreds of thousands of dollars in loans, but also saw very high interest rates charged on borrowers. The story of Rathbun’s boom and bust illustrates the volatility of the American financial world before the 1840s.

Incorrect. The answer is a. Before the 1840s, and especially in the 1830s, entrepreneurial American businessmen were able to borrow huge sums of money on their reputations and signatures alone. Business law and loan practices in this period enabled fraudulent borrowers to accumulate hundreds of thousands of dollars in loans, but also saw very high interest rates charged on borrowers. The story of Rathbun’s boom and bust illustrates the volatility of the American financial world before the 1840s.