The 19th-century financial panic that began in the United States in 1893 was the Panic of 1893.
The panic was triggered by a combination of weak railroad finances, failures among major companies, falling confidence, and pressure on the United States banking system. The failure of the Philadelphia and Reading Railroad in February 1893 was an early warning, while the collapse of the National Cordage Company intensified fears in May.
Banks suspended payments, businesses failed, and unemployment rose sharply. The crisis also produced a severe debate over monetary policy, especially the role of silver and the gold standard. The United States Treasury’s gold reserves fell dangerously low, and the government later sought assistance from a banking syndicate led by J. P. Morgan.
The Panic of 1893 is often confused with the Panic of 1873, which began in a different financial and railroad environment, or the Panic of 1907, which prompted later reforms. It was one of the most serious economic downturns in the United States before the Great Depression.