The Panic of 1873 began in the United States and Europe in 1873.
The crisis followed a period of rapid railway construction, heavy borrowing, and speculative investment. In the United States, the failure of the banking firm Jay Cooke & Company in September 1873 helped trigger a financial panic and forced the New York Stock Exchange to close temporarily.
The shock spread internationally. European banks and investors were also exposed to speculative projects and tightening credit, and the resulting downturn contributed to a prolonged period of weak growth often called the Long Depression. The label can be confusing because economic historians debate its exact duration and severity in different countries.
The Panic of 1873 was not a single day’s market plunge. It was a banking, credit, and investment crisis whose effects lasted for years. Railway failures and falling prices became especially important features of the period.