The 1893 U.S. financial crisis caused by railroad failures, bank runs, and uncertainty over silver policy was the Panic of 1893.
Railroad companies had expanded aggressively and relied heavily on borrowed money. When several major railroads failed, confidence weakened throughout the financial system. Banks and businesses faced withdrawals, falling asset values, and difficulty obtaining credit.
The crisis was intensified by debate over the federal government’s silver policy. Investors questioned whether the United States would maintain confidence in the dollar and gold reserves. The failure of the National Cordage Company and the subsequent pressure on banks helped turn financial stress into a nationwide panic.
The depression that followed was severe: unemployment rose, thousands of businesses and banks failed, and labor unrest increased. The Panic of 1893 is separate from the Panic of 1873 and from the political realignment surrounding the 1896 presidential election.