What date marks the beginning of the 1873 Panic in the United States, when Jay Cooke and Company failed?

September 18, 1873, marks the beginning of the 1873 Panic in the United States, when Jay Cooke and Company failed.

Jay Cooke and Company, a major investment bank, suspended operations on September 18 after it could not sell enough Northern Pacific Railway bonds. The failure damaged confidence in railroad finance and helped trigger a run on banks and businesses.

The New York Stock Exchange closed temporarily on September 20, 1873, for the first time in its history. The resulting depression lasted for years and spread through the United States and Europe. Railroad overbuilding, speculative investment, tight credit, and financial problems in Europe all contributed to the crisis.

The Panic of 1873 is sometimes called the Long Depression’s starting point in the United States. It should not be confused with the later Panic of 1893, which also involved railroad failures and severe economic distress.