The 1893 U.S. stock-market crash linked to railroad failures and a run on banks was the Panic of 1893.
The crisis intensified after the Philadelphia and Reading Railroad declared bankruptcy in February 1893 and the National Cordage Company failed in May. Investors lost confidence in heavily indebted railroads and other businesses, while banks faced withdrawals.
The panic developed into a severe depression. More than 500 banks and 15,000 businesses failed in the United States during the broader crisis, and unemployment rose sharply. The federal government’s gold reserves also came under pressure.
The Panic of 1893 is distinct from the Panic of 1873, which began after the collapse of the Vienna Stock Exchange and the failure of Jay Cooke & Company. It also came before the banking-centered Panic of 1907.