The 1837 depression turned states against direct railroad investment.

Evidence

The depression of 1837 left states with debts and bad investments. This soured the states on direct investment in railroads. Under the Michigan Constitution of 1850, the state could not own stock in any corporation, and most northern states, by 1860, had some similar type of provision in their own constitutions. — Lawrence M. Friedman, A History of American Law, 980

Categorization

• XREF: connects to: The 1837 panic reversed state investment in railroads and forced privatization. — Lawrence M. Friedman, A History of American Law, 1065; Post-1837 state governments barred themselves from owning corporate stock and lending credit — Lawrence M. Friedman, A History of American Law, 2978

Broader Connections

• The 1837 panic reversed state investment in railroads and forced privatization. #corroborates (0.95) — Lawrence M. Friedman, A History of American Law, 1065
• Post-1837 state governments barred themselves from owning corporate stock and lending credit #expands (0.85) — Lawrence M. Friedman, A History of American Law, 2978