The Panic of 1893 was the financial crisis and stock-market crash that began in the United States after major railroad failures and banking problems.
The collapse of the Philadelphia and Reading Railroad and the failure of the National Cordage Company intensified fears about corporate debt and financial stability. Depositors withdrew funds, banks failed, and credit became difficult to obtain. The New York Stock Exchange experienced severe pressure as investors sold shares and sought cash.
The crisis spread beyond the United States and contributed to a lengthy economic depression. Unemployment rose, businesses failed, and railroad bankruptcies became especially prominent. The federal government’s gold reserves also came under pressure, adding to the financial strain.
The Panic of 1893 is sometimes confused with the Panic of 1873 or the Panic of 1907. Those were separate crises with different immediate triggers. The 1893 panic is particularly associated with railroad overexpansion, indebtedness, bank runs, and a broad contraction in economic activity.