The Panic of 1893 helped trigger a severe stock-market collapse and a nationwide economic depression.
The crisis began after investors lost confidence in the financial condition of railroads and in the ability of banks and businesses to meet their obligations. The failure of the Philadelphia and Reading Railroad and the collapse of the National Cordage Company intensified fears. More than 500 banks failed during the panic, according to commonly cited historical estimates.
The event caused widespread unemployment, business failures, and bank runs in the United States. It also contributed to political conflict over monetary policy, especially the debate over whether the country should rely more heavily on silver coinage or maintain a gold standard.
The Panic of 1893 is distinct from the Panic of 1873, which was linked to railroad speculation and began an earlier long depression. Both were major nineteenth-century financial crises, but their causes and timing were different.