The severe U.S. market collapse that began in 1893 after National Cordage failed is called the Panic of 1893.
The panic started when the Philadelphia and Reading Railroad went bankrupt in February 1893, followed by the failure of the National Cordage Company in May. Investors rushed to sell securities, and confidence in railroads and banks weakened sharply.
The crisis became an international depression. More than 500 banks and thousands of businesses failed in the United States, while unemployment rose substantially. The U.S. Treasury also lost much of its gold reserve, contributing to a political struggle over monetary policy.
The Panic of 1893 is sometimes confused with the Panic of 1873, another major U.S. financial crisis linked to railroad speculation. The later Panic of 1907 had different immediate triggers and helped lead to the creation of the Federal Reserve.