Which 1893 U.S. financial panic followed railroad failures and a run on banks?

The 1893 U.S. financial panic that followed railroad failures and bank runs was the Panic of 1893.

The crisis emerged after a period of aggressive railroad expansion and borrowing. When several railroads failed, investors became less willing to provide credit, and doubts spread through the banking system. The failure of the Philadelphia and Reading Railroad in February 1893 was an important early warning, followed by the failure of the National Cordage Company in May.

Banks faced withdrawals, businesses lost access to financing and unemployment rose. The collapse also contributed to a sharp reduction in the U.S. gold reserve. President Grover Cleveland eventually arranged a controversial bond sale to replenish the Treasury’s gold holdings through a syndicate led by J. P. Morgan.

The depression that followed was severe and helped shape American politics, including the 1896 presidential election. The Panic of 1893 is distinct from the Panic of 1873, although both involved railroad speculation and financial contagion.