Panic of 1893

Quick Facts: Who was Panic of 1893?

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Panic of 1893

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A major US economic depression beginning in February 1893, deeply affecting all sectors.

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Origins & Early Life

The Panic of 1893 was an economic depression in the United States. It began in February 1893 and officially ended eight months later. The Panic of 1896 followed. It was the most serious economic depression in American history until the Great Depression of the 1930s. The Panic of 1893 deeply affected every sector of the economy and produced political upheaval that led to a political realignment and the presidency of William McKinley.

Pivotal Works & Achievements

The panic climaxed with a run on gold from the United States Treasury. Unemployment rates in many states rose above 25%, and poverty became widespread. Causes of the panic include: Baring crisis—Heavy investment in Argentina by Barings Bank, followed by the 1890 wheat crop failure and the Revolution of the Park, a failed coup in Buenos Aires, ended further investments in the country. Australian banking crisis of 1893—Speculation in South African and Australian properties collapsed. Fear of contagion led to a run on gold in the United States Treasury.

Enduring Legacy & Impact

Bullion coins were considered more valuable than paper money; when people were uncertain about the future, the hoarding of coins was widespread and paper notes were rejected. During the 1880s, American railroads experienced what might today be called a "stock market bubble": investors flocked to railroads, and they were greatly overbuilt. The McKinley Tariff, enacted in 1890, raised tariffs as high as 50%. The economic policies of President Benjamin Harrison, including trade protectionism, veterans' pensions, and silver. During the Gilded Age of the 1870s and 1880s, the United States had experienced economic growth and expansion, but much of this expansion depended on high international commodity prices, which were also affected by the McKinley Tariff of 1890.

Chronological Milestones & Life Events

1. 1890: 1890 Milestone — Causes of the panic include: Baring crisis—Heavy investment in Argentina by Barings Bank, followed by the 1890 wheat crop failure and the Revolution of the Park, a failed coup in Buenos Aires, ended further investments in the country.
2. 1893: 1893 Milestone — The Panic of 1893 was an economic depression in the United States.

Historical Fact-Check Quiz: Panic of 1893

True or False: “The Panic of 1893 was the most severe economic downturn in American history until the Great Depression of the 1930s.”

Answer (TRUE ⭕): This statement is accurate; it represents a major historical benchmark for US economic crises.

Contemporary Figures & Related Historical Timelines

• Albert Szent-Györgyi — Historical peer (Born in 1893) (1893): Pioneering Hungarian biochemist, Nobel laureate for Vitamin C and muscle research.
• Alexander Cunningham — Historical peer (Died in 1893) (1893): Pioneering British archaeologist and founder of the Archaeological Survey of India.
• A. C. Bhaktivedanta Swami Prabhupada — Historical peer (Born in 1896) (1896): Pioneering global spread of Krishna consciousness teachings and the Hare Krishna mantra.
• Alfonso Caso — Historical peer (Born in 1896) (1896): Pioneering Mexican archaeologist renowned for pre-Columbian studies.
• Abdul Ghaffar Khan — Historical peer (Born in 1890) (1890): Pioneering nonviolent activist and founder of the Khudai Khidmatgar movement.
• Agatha Christie — Historical peer (Born in 1890) (1890): The 'Queen of Crime,' a master of the mystery genre, best-selling author of all time.

Frequently Asked Questions about Panic of 1893