The Panic of 1893 was the U.S. financial crisis associated with the collapse of the Philadelphia and Reading Railroad.
The railroad’s bankruptcy in February 1893 was an early warning sign of broader instability. Excessive railroad construction, overextended companies, declining confidence, and disputes over U.S. monetary policy weakened the financial system. When the National Cordage Company failed in May, panic spread through banks and securities markets.
The crisis contributed to a severe depression. More than 500 banks and around 15,000 businesses failed in the United States during the downturn, while unemployment reached very high levels. The federal government’s gold reserves also came under pressure.
The Panic of 1893 is often discussed alongside the debate over silver currency, including William Jennings Bryan’s 1896 “Cross of Gold” speech. It was not simply a stock-market event: railroads, banks, currency policy, and international capital flows all mattered.