What event marked the start of the Panic of 1873 in the United States?

Jay Cooke and Company’s failure marked the start of the Panic of 1873 in the United States.

The major investment bank collapsed on September 18, 1873, after it could no longer sell bonds for the Northern Pacific Railway. The failure destroyed confidence in railroad financing and helped set off a broader financial panic. The New York Stock Exchange closed temporarily on September 20.

The panic was part of an international downturn. European financial stress, railroad overbuilding, speculative investment, and tight credit all contributed to the crisis. The resulting depression lasted for years and affected banks, railroads, businesses, and workers across the United States.

The Knickerbocker Trust failure belongs to the Panic of 1907, not 1873. The Erie Railroad also experienced financial trouble, but Jay Cooke’s failure is the specific event traditionally identified as the immediate American trigger of the 1873 panic.