The 1873 financial crash that began in Vienna and helped inaugurate the prolonged downturn known as the Long Depression was the Panic of 1873.
The Vienna Stock Exchange fell sharply in May 1873 after speculative investment in railways, construction, and property lost momentum. Financial failures then spread to other markets, including Germany and the United States. In the United States, the collapse of the banking firm Jay Cooke and Company in September intensified the panic and contributed to the temporary closure of the New York Stock Exchange.
The downturn reflected more than one exchange collapse. Excess credit, railway speculation, falling prices, and international financial links all played roles. The subsequent period of weak growth and deflation is often called the Long Depression, although historians debate its precise duration and severity compared with the Great Depression.
The Panic of 1873 is different from the U.S. Panic of 1907, which involved J. P. Morgan's rescue efforts. It also occurred before modern central banks had the tools later used to stabilize markets.