The 1893 U.S. financial panic intensified by railroad failures and a run on gold reserves was the Panic of 1893.
The crisis followed years of railroad expansion, heavy borrowing, and speculative investment. When major railroads began failing, confidence weakened across the banking system. The collapse of the Philadelphia and Reading Railroad in February 1893 was an important early warning, and the failure of the National Cordage Company added to the pressure.
Investors and depositors sought gold, reducing the government’s reserves and increasing fears about the United States’ ability to maintain confidence in its currency. The panic produced widespread bank failures, business closures, and unemployment. It also became a major political issue during the 1896 presidential campaign, especially in disputes over monetary policy. The Panic of 1873 was an earlier crisis, while the Panic of 1907 occurred fourteen years later.