The 1893 U.S. financial panic that followed the failure of the Philadelphia and Reading Railroad and triggered a severe depression was called the Panic of 1893.
The railroad sector had expanded rapidly, and investors had financed companies with heavy borrowing. The Philadelphia and Reading Railroad entered receivership in February 1893, helping undermine confidence. The failure of the National Cordage Company and concerns about the Treasury's gold reserves deepened the crisis.
The New York Stock Exchange experienced sharp declines, while banks and businesses failed across the United States. Unemployment rose substantially, and the resulting depression lasted for several years. The crisis also contributed to major political conflict over monetary policy, especially the debate over silver and the gold standard.
The Panic of 1893 is sometimes confused with the Panic of 1873, another railroad-centered financial crisis. The later panic was especially important in shaping the 1896 presidential campaign and the national argument over currency.