The Panic of 1873 occurred in 1873 and helped begin the period commonly called the Long Depression.
The crisis followed speculative expansion in railways, property, and finance. In the United States, the failure of the investment bank Jay Cooke & Company in September 1873 helped trigger a wider panic. The New York Stock Exchange temporarily closed for the first time in its history, from September 20 to September 29.
The downturn spread across the Atlantic, affecting Germany, Austria-Hungary, Britain, and other economies. Falling prices and weak investment persisted for years, although historians debate the precise dates and severity of the “Long Depression.” Economic performance was uneven, and some industries continued to grow despite prolonged deflationary pressure.
The 1873 panic is not the same event as the Panic of 1857 or the Panic of 1893. It also predates the Federal Reserve, which was created in 1913. Its international reach makes it an important early example of interconnected financial markets.