The 1893 U.S. financial crisis that followed railroad failures and bank runs was the Panic of 1893.
The panic began when doubts about railroad financing and the solvency of major companies spread through financial markets. The failure of the Philadelphia and Reading Railroad and the collapse of the National Cordage Company intensified the fear. Bank runs then reduced available credit and caused many businesses to fail.
The crisis contributed to a severe economic depression in the United States. Unemployment rose, industrial production weakened, and labor conflict increased. The depression also became entangled with debate over the gold standard and the nation’s currency policy.
The Panic of 1893 is distinct from the Panic of 1873, which helped begin the Long Depression, and the Panic of 1907, which later encouraged creation of the Federal Reserve. All three were major U.S. financial crises, but they occurred in different decades.