Panic of 1893

Panic of 1893 that ended an era of amazing economic growth is definitely a major event in the American history. Followed by violent strikes a new political balance was created while transforming national economy, as well as far-reaching social and intellectual developments. Railroads were overbuilt at the time, allowing speculative motives to come first. Numerous companies were continuing their growth by takeovers of competition, despite of the potential negative effects. The panic which eventually started in New York over the course of time spread over the United States of America. Read more about the Panic of 1893 aftermath here.

Long depression of 1873 - part II

After the completion of the transcontinental Union Pacific Railroad in 1869, the public almost immediately requested another, called the Northern Pacific. Jay Cooke banking house needed to raise money for this project, but weakened economic conditions proved the Northern Pacific less attractive to investors. Since railroads were overbuilt, the competition was intense. Meanwhile speculation dominated in railroad securities, as well as in market in general. When the project failed, the connected companies fell as well. Panic started on the New York Stock Exchange forcing the bankers to close trading for ten days. The financial problems returned to Europe, causing a second panic in Vienna and numerous failures in continental Europe before receding. The Long Depression brought instability to the European countries, making international relations worse. For the next two decades, ripple effect from the crisis shook the economies. In the United States recovery began slowly in 1878, after many hardships endured. Read more about the consequences of Long Depression...

Long depression of 1873

The Long depression was the first worldwide economic crisis, which happened in 1873. It began with a building boom in Europe, with massive construction levels taking place in Vienna, Paris and Berlin. In the United States the economy was also over-expanded, particularly in railroad construction. But after the Civil War the country needed rebuilding, therefore housing and construction levels grew quickly. Railroads were built at a record rate and everybody considered that this era of prosperity will never end. The idea of growth was destroyed in 1873, with stock market crash which started the Long Depression. The weak link turned out to be Jay Cooke and Company, a large and respected banking house. Cooke had played a large role in financing the Union war effort by marketing federal bonds to farmers and workers. After the war, the company had become the government's agent in financing railroad construction. However, one wrong decision regarding Northern Pacific Railway caused the demise of the banking house and started a nationwide depression. Read more about the Long Depression here...

Panic of 1857

The Panic of 1857 occurred after a loss of confidence in an Ohio bank and subsequently spread as railroads failed. Railroad speculation was high and the crisis made the people pay for their unwise and greed-driven decisions. On August 24, 1857, the New York branch of the Ohio Life Insurance and Trust Company failed due to the massive embezzlement spreading panic as the confidence in banks was slowly disappearing. Soon nationwide banks began to collapse and a severe economic depression in the United States started. Many people lost their jobs and massive protests followed. Adding to the troubles of the banks, the sailing ship full of gold was lost in the hurricane and sank to the bottom of the ocean. With their failed investments in railroad and land, it was impossible for the banks to gather all the gold their customers demanded. Read more about the Panic of 1857 here.