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

The bankruptcy of the Philadelphia and Reading Railroad helped trigger the Panic of 1893 in the United States.

The railroad entered receivership in February 1893 after years of debt, competition, and financial strain. Its failure damaged confidence in the broader railroad sector, which had attracted heavy investment and carried substantial debt.

The panic intensified when the National Cordage Company failed in May 1893. Bank runs, business failures, falling commodity prices, and a severe contraction followed. The United States also lost gold reserves, contributing to a financial crisis and a prolonged depression.

The Philadelphia and Reading Railroad is often shortened to the Reading Railroad. It is not the same company as the Northern Pacific Railway, whose financial failure helped spark the Panic of 1873. The Panic of 1893 also became a major political issue in the debate over the gold standard and silver coinage.