The 1893 U.S. financial panic that followed the Philadelphia and Reading Railroad bankruptcy was the Panic of 1893.
The railroad entered receivership in February 1893, helping undermine confidence in heavily indebted American rail companies. The failure of the National Cordage Company in May intensified pressure on banks and businesses. Investors rushed to convert deposits into gold, reducing the reserves available to support the financial system.
The panic contributed to a severe depression in the United States. Thousands of businesses and banks failed, and unemployment rose sharply. The crisis also damaged the political standing of President Grover Cleveland and helped make monetary policy, especially the debate over gold and silver, a central issue in the 1896 election.
The Panic of 1893 is sometimes confused with the Panic of 1873, which helped begin the Long Depression. The later panic was a separate crisis, although both were closely connected to railroad finance and banking instability.