What event triggered the Panic of 1893 after the Philadelphia and Reading Railroad failed?

The bankruptcy of the Philadelphia and Reading Railroad helped trigger the Panic of 1893.

The railroad entered receivership in February 1893 after carrying heavy debt and struggling with financial problems. Its failure damaged confidence in railroad securities, a major part of American investment at the time. Investors became increasingly worried about the solvency of other companies and banks.

The panic intensified when the National Cordage Company failed in May. Bank runs followed, businesses collapsed, and unemployment rose sharply. The crisis became one of the most severe economic depressions in the United States before the twentieth century.

The panic also reflected deeper problems, including overbuilding of railroads, weak commodity prices, and disputes over monetary policy. It is sometimes confused with the Panic of 1873, another crisis strongly connected with railroad finance.