The 1893 U.S. financial panic that included a major stock-market crash and widespread bank failures was the Panic of 1893.
The crisis emerged amid doubts about railroad finances, falling investment, and concerns over the government’s monetary policy and silver purchases. The collapse of the Philadelphia and Reading Railroad in February 1893 and the failure of the National Cordage Company in May intensified fear. A run on banks followed, and hundreds of banks and railroads failed during the depression that accompanied the panic.
The New York Stock Exchange suffered a major decline, while unemployment and business failures spread across the United States. The crisis also affected Europe because American railroad securities were held by foreign investors and financial institutions.
The Panic of 1893 is sometimes confused with the Panic of 1873, another major railroad-linked crisis. The 1893 episode was especially associated with debates over silver, gold, and the nation’s monetary standard.