Which bank failed first in the United States during the Panic of 1873?

Jay Cooke and Company failed first in the United States during the Panic of 1873.

Jay Cooke and Company, a major investment bank, suspended payments on September 18, 1873. Its failure followed the collapse of the Northern Pacific Railway’s financing plans and exposed the risks of heavy investment in railroads. Jay Cooke had been deeply involved in marketing railroad bonds, so its failure damaged confidence in financial markets.

The panic began in Europe before spreading to the United States. The Vienna Stock Exchange crash in May 1873 and financial troubles in other European markets formed part of the international background. In the United States, railroad speculation, overbuilding, and tight credit made the system especially vulnerable.

The New York Stock Exchange closed temporarily for the first time in its history, from September 20 to September 29, 1873. The resulting depression lasted for years and was sometimes called the Long Depression. It is distinct from the Great Depression of the 1930s, despite the similar name used in some historical accounts.