The U.S. financial panic that began in 1893 after major railroad failures and banking troubles was the Panic of 1893.
The crisis began when confidence in railroads and other businesses weakened. The failure of the Philadelphia and Reading Railroad in February 1893 and the collapse of the National Cordage Company in May helped intensify pressure on banks and investors. A run on banks followed, and many businesses and railroads failed.
The panic produced a severe economic depression in the United States. Unemployment rose, industrial production declined, and social unrest increased. The crisis also affected other countries because international investors and financial institutions were closely connected.
The Panic of 1893 is sometimes confused with the Panic of 1873, another major financial crisis linked to railroad speculation. It also predates the better-known Panic of 1907, which involved a separate banking emergency. The 1893 crisis contributed to political debates over monetary policy, especially the role of silver and the gold standard.