The Panic of 1893 was a major United States financial crisis that became one of the nineteenth century’s worst depressions.
The crisis was intensified by the failure of the Philadelphia and Reading Railroad and the collapse of the National Cordage Company. Investors and depositors lost confidence, while banks and railroads failed. The New York Stock Exchange experienced severe pressure as people sold securities to obtain cash.
A major issue was uncertainty over the nation’s monetary policy, especially the debate over silver and the gold standard. Falling reserves and fears about the government’s ability to maintain gold payments added to financial stress. The depression that followed produced widespread unemployment and business failures.
The crisis is sometimes confused with the Panic of 1873, which helped begin the Long Depression, or with the Panic of 1907, which later encouraged creation of the Federal Reserve. The 1893 panic also influenced American politics, particularly the 1896 presidential campaign and the debate over free silver.