The 1893 U.S. financial crisis that followed railroad failures and bank runs is called the Panic of 1893.
The panic was intensified by the failure of the Philadelphia and Reading Railroad in February 1893 and the collapse of the National Cordage Company in May. Investors lost confidence in railroads and banks, while withdrawals drained institutions of cash. The New York Stock Exchange experienced heavy selling, and numerous banks and businesses failed.
The crisis produced a severe economic depression in the United States. Unemployment rose, industrial output weakened, and the number of railroad bankruptcies became exceptionally high. The government’s gold reserves also became a major political issue, contributing to the repeal of the Sherman Silver Purchase Act.
The Panic of 1893 is sometimes confused with the Panic of 1873, which began a different downturn and was associated with the Long Depression. The 1893 crisis was especially damaging to the U.S. banking and railroad sectors.