Which stock exchange crash in 1873 helped trigger the Long Depression?

The Vienna Stock Exchange crash in 1873 helped trigger the Long Depression.

The Vienna market collapsed on May 9, 1873, a day remembered in German-speaking Europe as Gründerkrach, or “founders’ crash.” Speculative investment had surged after the creation of the German Empire in 1871, and investors poured money into railways, construction, and companies with inflated valuations.

The Vienna collapse exposed weaknesses in banks and businesses across Central Europe. Financial stress then spread internationally, reaching the United States after the failure of the investment bank Jay Cooke & Company in September 1873. The resulting panic contributed to bank failures, falling prices, unemployment, and a long period of weak economic growth.

The term Long Depression is used by many historians for the global downturn lasting roughly from 1873 to 1896, although its severity and timing varied by country. It is distinct from the Great Depression of the 1930s.