The Panic of 1893 was a U.S. crisis marked by railroad failures and a run on gold reserves.
The collapse of the Philadelphia and Reading Railroad and other railroad companies weakened confidence in banks and securities. Investors and depositors sought safer assets, including gold, while concern grew over the U.S. government’s ability to maintain confidence in its currency. The resulting financial pressure contributed to a severe economic depression.
More than 500 banks and numerous railroads failed during the crisis, according to historical accounts. Unemployment rose sharply, and labor conflict intensified. The depression also damaged farmers and businesses already struggling with falling prices.
The crisis helped shape the 1896 presidential election, in which monetary policy and the debate over silver versus gold became central issues. It is distinct from the Panic of 1873, which began a generation earlier, and the Panic of 1907, which later encouraged U.S. banking reform.