The Panic of 1893 was the US financial crisis associated with the failure of the Philadelphia and Reading Railroad.
The railroad’s collapse helped undermine confidence in heavily indebted rail companies and contributed to a run on banks. The crisis also involved the failure of the National Cordage Company and pressure on the US Treasury’s gold reserves.
The panic produced a severe depression in the United States, with widespread bank failures, business closures, unemployment, and falling commodity prices. It became one of the most serious economic downturns of the nineteenth century.
The crisis is often linked to the Sherman Silver Purchase Act because debate over silver and gold increased uncertainty about the dollar. It is distinct from the Panic of 1873, which began in a different financial environment and earlier period.