The 1893 U.S. financial panic that followed the collapse of the Philadelphia and Reading Railroad was the Panic of 1893.
The Philadelphia and Reading Railroad entered receivership in February 1893, adding to concerns about railroad debt and financial stability. Later that year, the failure of the National Cordage Company and the collapse of confidence intensified the crisis. Banks failed, businesses closed, and unemployment rose sharply.
Debate over the Sherman Silver Purchase Act and the country’s monetary system also contributed to uncertainty. Investors worried that the United States might move away from the gold standard, encouraging withdrawals and the export of gold.
The Panic of 1893 produced a deep depression in the United States. It is distinct from the Panic of 1873, although both crises involved railroads, and from the Panic of 1907, which helped inspire the Federal Reserve system. The depression also contributed to major labor unrest, including the Pullman Strike of 1894.