The 1893 U.S. financial crisis marked by railroad failures and bank runs was the Panic of 1893.
The panic began after the Philadelphia and Reading Railroad and other rail companies failed, undermining confidence in heavily indebted businesses. Investors became worried about railroad overbuilding, falling agricultural prices, and the government’s ability to maintain its gold reserves. The failure of the National Cordage Company intensified the shock, and bank runs spread as depositors sought cash.
The resulting depression brought widespread business failures, falling employment, and severe hardship. More than 15,000 businesses and about 500 banks failed during the broader downturn, according to commonly cited historical estimates. The crisis also contributed to political conflict over monetary policy, especially the debate between supporters of the gold standard and advocates of freely coined silver.
The Panic of 1893 is sometimes confused with the Panic of 1873, which followed the failure of Jay Cooke and Company, or the Panic of 1907, which involved the Knickerbocker Trust Company. Those were separate U.S. financial crises with different triggers and dates.