The Panic of 1893 was the U.S. financial panic that caused a major stock-market collapse and a four-year economic depression.
The crisis began when investor confidence weakened over railroad financing, falling commodity prices, and concerns about the federal government’s gold reserves. The failure of the Philadelphia and Reading Railroad in February 1893 helped expose broader weaknesses, and the collapse of the National Cordage Company intensified the panic.
More than 500 banks and about 15,000 businesses failed during the depression that followed. Unemployment rose sharply, while railroad bankruptcies disrupted a sector that had been central to American economic growth. The panic also contributed to political conflict over monetary policy, especially the debate over using silver alongside gold.
The Panic of 1893 is sometimes confused with the Panic of 1873, which preceded a different long depression, or with the Panic of 1907, which later helped inspire the Federal Reserve. It was also an international crisis, with financial stress spreading beyond the United States.