The Panic of 1873 occurred in 1873 and helped begin the period called the Long Depression.
The crisis followed speculative expansion in railways, property, and construction. In Vienna, the failure of the investment firm of S. M. von Rothschild helped trigger the Vienna Stock Exchange crash in May. Financial stress then spread internationally, reaching the United States after the failure of the banking firm Jay Cooke & Company in September.
The panic contributed to bank failures, falling investment, unemployment, and prolonged weakness in prices and business activity. The effects varied by country, and historians debate whether the entire period should be called a depression or a long deflationary downturn.
A common mix-up is to treat the Panic of 1873 as solely an American event. Its European origins and international transmission are central to its historical importance. It also helped end the post-Civil War railroad boom in the United States.