Which exchange’s crash in May 1873 helped begin the long financial crisis known as the Panic of 1873?

The Vienna Stock Exchange crash in May 1873 helped begin the long financial crisis known as the Panic of 1873. The collapse followed a period of intense speculation in Austria-Hungary.

The exchange crash occurred on May 9, 1873, a date remembered in German-speaking Europe as Black Friday. Investors had poured money into railways, construction, and property after economic expansion and monetary changes encouraged credit growth. When confidence broke, share prices plunged and many banks failed.

Financial stress soon spread internationally. The United States experienced a major banking and railroad crisis later in 1873, including the failure of Jay Cooke & Company. The resulting downturn lasted for years and is often called the Long Depression, although historians debate its exact boundaries and severity.

The Vienna crash was therefore an important starting point, not the only cause. Overinvestment, debt, banking fragility, and interconnected capital markets all contributed to the wider crisis.