The 1893 U.S. panic followed the failure of the Philadelphia and Reading Railroad and a run on banks, and it became the Panic of 1893.
The Philadelphia and Reading Railroad entered receivership in February 1893. The failure intensified concerns about railroad overbuilding, corporate debt, and the financial system’s ability to meet obligations. A run on the National Cordage Company soon added to the pressure.
The crisis became one of the most severe depressions in U.S. history before the twentieth century. Thousands of businesses and banks failed, unemployment rose sharply, and railroad bankruptcies spread across the country.
The panic also produced a major political conflict over monetary policy. President Grover Cleveland backed repeal of the Sherman Silver Purchase Act, while supporters of free silver argued that expanding silver money could ease deflation and debt burdens.