What was the 1873 financial crisis in the United States commonly called?

The 1873 financial crisis in the United States was commonly called the Panic of 1873. It began after the collapse of Jay Cooke & Company, a major investment bank heavily involved in financing railroads and government bonds.

Jay Cooke’s failure was linked to problems in railroad financing, especially the Northern Pacific Railway. Speculative investment had produced excessive construction and debt, while tighter credit made refinancing difficult. The bank suspended payments in September 1873, helping trigger a wider panic.

The crisis spread internationally and contributed to a long period of weak economic growth often called the Long Depression. In the United States, the New York Stock Exchange temporarily closed for about ten days. Bank failures, falling prices, and unemployment followed.

The Panic of 1873 is sometimes confused with the Long Depression itself. The panic names the financial shock that began the downturn, while the Long Depression describes the extended economic period that followed in the United States and Europe.