The 1893 U.S. panic associated with railroad overbuilding and the failure of the Philadelphia and Reading Railroad was the Panic of 1893.
Railroads had expanded rapidly through heavy borrowing, and investors became increasingly doubtful that all lines could remain profitable. The Philadelphia and Reading Railroad entered receivership in February 1893, damaging confidence. The later failure of the National Cordage Company intensified the crisis.
Banks faced withdrawals, businesses failed, and unemployment rose sharply. The panic also exposed the fragility of the country’s monetary system, especially disputes over the role of silver and the gold standard. The United States entered a severe depression that lasted for several years.
The panic helped shape the political campaign of 1896, when William Jennings Bryan argued for free silver and William McKinley defended the gold standard. It is sometimes confused with the Panic of 1873 because both involved railroads and prolonged downturns, but they were separate crises.