The 1893 U.S. financial crisis marked by bank failures and a stock-market collapse was called the Panic of 1893.
The downturn followed the bankruptcy of the Philadelphia and Reading Railroad and growing fears about railroad finance. Investors also worried about the federal government’s gold reserves and the long-term value of paper currency. Runs on banks and railroads spread, creating a severe credit contraction.
More than 500 banks and around 15,000 businesses failed during the depression that followed, according to commonly cited historical estimates. Unemployment rose sharply, and many railroad companies entered receivership. The crisis affected both industrial centers and agricultural communities.
The panic is sometimes mixed up with the Panic of 1873 or the Panic of 1907, which were separate U.S. financial crises. The 1893 event also intensified political conflict over monetary policy, especially the debate over silver and the gold standard.