Which company’s failure helped trigger the Panic of 1893 in the United States?

The failure of Philadelphia and Reading Railroad helped trigger the Panic of 1893 in the United States. The company entered receivership in February 1893 after struggling with heavy debt and weak railroad earnings.

Railroads were central to the era’s economy, and investors had bought large quantities of railroad securities. When confidence weakened, concerns about railroad finances spread through banks and markets. The failure of the Reading company was followed by the collapse of the National Cordage Company and a broader loss of confidence.

The panic became one of the most severe depressions of the nineteenth century. Thousands of businesses and banks failed, unemployment rose, and railroad bankruptcies increased. The crisis also contributed to political conflict over monetary policy, especially the debate over silver and the gold standard. The 1893 panic is separate from the later Panic of 1907.