The 1893 financial panic that caused widespread bank failures and a severe U.S. economic depression was the Panic of 1893.
The crisis began after concerns about railroad financing, declining investment confidence, and the financial position of the Reading Railroad. The failure of the Philadelphia and Reading Railroad in February 1893 intensified pressure on banks and investors. A major run on gold reserves also weakened confidence in the U.S. financial system.
Hundreds of banks and railroads failed during the depression that followed. Unemployment rose sharply, and the downturn contributed to labor unrest, including the Pullman Strike of 1894. The crisis also became an important political issue in the debate over gold and silver currency.
The Panic of 1893 is separate from the Panic of 1873 and the Panic of 1907. Unlike the 1907 panic, it did not directly produce the Federal Reserve; that institution was created after later financial reforms.