The Panic of 1873 began in 1873 and helped start the period later called the Long Depression.
The panic followed speculative expansion in railways, property, and other industries. In the United States, the failure of Jay Cooke & Company in September 1873 undermined confidence and contributed to the closure of the New York Stock Exchange for about ten days. Financial stress also affected Europe, where the collapse of Vienna’s stock-market boom had already exposed similar vulnerabilities.
The resulting downturn brought bank failures, falling prices, reduced investment, and high unemployment in several countries. Historians debate the exact duration and terminology of the subsequent depression, but the crisis clearly marked a major international financial contraction.
It is often confused with the Panic of 1893, another severe U.S. financial crisis. The 1873 panic was earlier and closely linked to railroad speculation and the failure of Jay Cooke, a major government bond financier.