Which U.S. financial panic began in 1893 after railroad failures and a run on banks?

The U.S. financial panic that began in 1893 after railroad failures and bank runs was the Panic of 1893.

The crisis followed the collapse of the Philadelphia and Reading Railroad in February 1893 and the failure of the National Cordage Company in May. Investors became alarmed about railroad debt, while banks faced withdrawals and reduced confidence. The Philadelphia and Reading failure helped trigger a wider wave of financial distress.

The panic produced a severe depression in the United States. Thousands of businesses and banks failed, unemployment rose sharply, and railroad bankruptcies spread across the country. The crisis also intensified political conflict over monetary policy, especially the debate over whether the United States should maintain the gold standard or expand silver coinage.

The Panic of 1893 is sometimes confused with the Panic of 1873, which helped begin the Long Depression. The later panic was worsened by the failure of the U.S. Treasury’s gold reserves to reassure markets and ended only after financial confidence gradually returned.