Vienna’s stock exchange crash is commonly linked to the start of the Long Depression in 1873.
On 9 May 1873, the Vienna Stock Exchange suffered a dramatic collapse known as the Gründerkrach, or “founders’ crash.” A speculative boom had driven investment in railways, construction, banks, and new companies across the Austro-Hungarian Empire.
The Vienna crash followed the collapse of several financial ventures and caused confidence to deteriorate rapidly. Financial stress then spread internationally, including to Germany and the United States. In the United States, the failure of the banking firm Jay Cooke & Company contributed to the Panic of 1873.
Historians debate the exact boundaries and causes of the Long Depression, and the downturn did not have identical timing in every country. It is generally described as beginning in 1873 and lasting, with interruptions and regional differences, into the 1890s. Vienna’s crash was therefore an important trigger and symbol, not the only cause.