The 1901 U.S. stock-market panic caused partly by speculation in Northern Pacific Railway shares is called the Panic of 1901.
The panic centered on a struggle for control of the Northern Pacific Railway. Rival financiers James J. Hill and Edward Harriman sought influence over the company, while investors bought shares in expectation of further gains. Northern Pacific’s stock price rose dramatically before a shortage of available shares triggered frantic buying.
On May 9, 1901, the price collapsed, causing severe losses and spreading pressure through the New York Stock Exchange. The crisis was primarily a stock-market panic rather than a prolonged nationwide banking depression.
The Panic of 1901 is often confused with the Panic of 1907, which occurred six years later and involved the collapse of the Knickerbocker Trust Company. Both episodes were associated with financial instability, but their immediate triggers were different.