The crisis that began with the failure of Vienna’s stock exchange in May 1873 and helped start the Long Depression was the Panic of 1873.
The Vienna crash, known as the Gründerkrach, followed years of speculative investment in railways, land, and construction. Financial stress then spread to other markets, including Germany and the United States. In September 1873, the failure of the investment bank Jay Cooke & Company helped trigger a major U.S. panic.
The resulting downturn affected banks, railroads, businesses, and workers. In the United States, the New York Stock Exchange temporarily closed for several days in September. The period that followed is commonly called the Long Depression, although its timing and severity varied by country.
The Panic of 1873 is distinct from the Panic of 1893, another severe U.S. crisis involving railroad failures and banking problems. The 1873 episode had important international roots and consequences.