The U.S. stock market crash associated with the collapse of the Philadelphia and Reading Railroad in 1893 was the Panic of 1893.
The Philadelphia and Reading Railroad, commonly called Reading, entered receivership in February 1893 after years of heavy borrowing and financial difficulties. Its failure damaged confidence in railroad securities, which were central to American investment markets. The collapse of the National Cordage Company soon added to the panic.
Bank failures, gold-reserve pressures, falling commodity prices, and weak railroad finances spread the crisis through the economy. The United States experienced a severe depression, with widespread unemployment and business failures. The panic also became a major political issue during the debate over monetary policy and the gold standard.
The event is distinct from the Panic of 1873, which followed failures connected with Jay Cooke & Company and the Northern Pacific Railway. The 1893 panic also preceded the 1907 crisis that later helped lead to the Federal Reserve.