The 1893 U.S. financial crisis that triggered a severe stock-market decline was the Panic of 1893.
The panic followed the collapse of confidence in railroads and the financial institutions that supported them. The failure of the Philadelphia and Reading Railroad in February 1893 helped reveal the system's weakness. In May, the failure of the National Cordage Company intensified the crisis and contributed to a run on banks.
More than 500 banks and about 15,000 businesses failed during the depression that followed, according to contemporary and historical estimates. Unemployment rose sharply, and railroad bankruptcies spread across the country. The crisis also intensified debate over the gold standard and the use of silver. The Panic of 1893 is distinct from the Panic of 1873, although both were associated with railroad speculation and prolonged economic hardship.