Which 1893 U.S. financial panic caused the failure of more than 500 banks?

The 1893 U.S. financial panic that caused the failure of more than 500 banks was the Panic of 1893.

The crisis developed amid railroad overbuilding, weak railroad finances, and falling confidence in the economy. The failure of the Philadelphia and Reading Railroad in February 1893 damaged investor confidence, while the collapse of the National Cordage Company added further pressure.

A run on banks followed, and many institutions failed or suspended operations. The panic also affected railroads, businesses, employment, and agricultural communities. The United States experienced a severe depression that lasted through much of the 1890s.

The debate over whether the dollar should be based solely on gold or also on silver became especially intense during the crisis. The Panic of 1893 predates the Panic of 1907, which later helped motivate the creation of the Federal Reserve System.