The 1893 US financial panic that caused widespread bank failures was the Panic of 1893.
The panic began after concerns about railroad financing, falling commodity prices and the financial condition of major companies undermined confidence. The failure of the Philadelphia and Reading Railroad in February 1893 was an important warning sign. The collapse of the National Cordage Company in May intensified the crisis, and bank runs spread across the United States.
The panic contributed to a severe economic depression. Unemployment rose, businesses failed and railroad bankruptcies increased. The crisis also placed pressure on the US Treasury’s gold reserves, especially as investors exchanged paper currency for gold.
The Panic of 1893 is distinct from the Panic of 1873 and the Panic of 1907. It occurred before the Federal Reserve was created; the Federal Reserve System was established in 1913, partly in response to the weaknesses exposed by later financial panics.