The 1893 U.S. financial panic that triggered a major stock-market collapse and severe depression was the Panic of 1893.
The crisis began after the failure of the Philadelphia and Reading Railroad and the collapse of other overextended rail companies. Investors rushed to sell securities, while bank failures and a shortage of gold reserves intensified the turmoil. The New York Stock Exchange experienced steep declines as confidence evaporated.
The panic produced one of the highest unemployment rates of the nineteenth century and caused widespread business failures. The depression lasted until roughly 1897, although recovery varied by industry and region.
The Panic of 1893 is distinct from the Panic of 1873 and the Panic of 1907. It also helped make monetary policy, especially the debate over gold and silver, a central issue in American politics during the 1896 presidential campaign.