The 1893 U.S. financial crisis marked by bank failures and a severe depression was called the Panic of 1893.
The crisis began when investor confidence collapsed amid railroad overbuilding, falling agricultural prices, and concerns about the soundness of the U.S. monetary system. The failure of the Philadelphia and Reading Railroad in February 1893 intensified the panic, while the failure of the National Cordage Company in May helped trigger widespread bank runs and business failures.
The panic contributed to a major economic depression in the United States. Unemployment rose sharply, many banks suspended payments, and numerous railroads entered bankruptcy. The crisis also helped make the debate over gold and silver a central issue in American politics, especially during the 1896 presidential campaign.
The Panic of 1893 is sometimes confused with the Panic of 1873, another U.S. crisis linked strongly to railroad speculation. The 1893 panic preceded the separate Panic of 1907, which led to J. P. Morgan’s famous private-sector rescue.