The 1873 financial panic that helped end the post-Civil War boom in the United States was the Panic of 1873.
The crisis began in Europe before spreading to North America. In the United States, the failure of the banking firm Jay Cooke & Company on 18 September 1873 undermined confidence in railroad finance. The New York Stock Exchange closed temporarily, and many banks and businesses failed.
Railroad expansion had encouraged heavy borrowing and speculative investment. When expected profits failed to materialize, investors rushed to sell securities and withdraw funds. The resulting contraction contributed to the prolonged economic period later called the Long Depression.
The Panic of 1873 is often confused with the Panic of 1893, another major American financial crisis. The earlier panic was closely associated with railroad speculation and the collapse of Jay Cooke & Company.