The U.S. financial panic that began in 1893 after the Reading Railroad failed and caused a banking crisis was the Panic of 1893.
The Reading Railroad entered receivership in February 1893, helping expose the fragility of a financial system heavily involved in railroad construction and speculation. Other railroad failures followed, and public confidence weakened. The collapse of the National Cordage Company added to the pressure.
A run on banks and withdrawals of gold reduced available credit. More than 500 banks failed during the crisis, while railroad companies went bankrupt and unemployment rose. The downturn became one of the most severe economic depressions the United States had experienced up to that time.
The panic is often linked to the debate over the gold standard and silver coinage, but no single policy caused every part of the crisis. The Pullman Strike of 1894 occurred during the depression, not at its beginning. The Panic of 1893 also helped make economic issues central to the 1896 presidential election.