Manhattan, New York, USA (New York City) (New Amsterdam) (Washington Heights)
1893 - May 5 – Panic of 1893: A crash on the New York Stock Exchange starts a depression.

The Panic of 1893 was a severe economic depression that occurred in the United States and had significant repercussions on the global economy. It was one of the most severe financial crises in American history and lasted for several years, causing widespread unemployment, business failures, and social unrest.

Causes:

Railroad Overbuilding: In the late 1800s, there was an excessive expansion of railroad construction, leading to overbuilding and overextension of credit to finance these projects.

Speculative Bubble: A speculative bubble formed around various industries, particularly in the railroad sector, leading to inflated stock prices and unsustainable investments.

Government Policies: The Sherman Silver Purchase Act of 1890, which required the U.S. government to buy silver and issue currency, further destabilized the economy. The act caused a run on the gold reserves as investors sought to convert their currency to gold.

Bank Failures: Several banks and financial institutions collapsed due to their heavy investment in speculative ventures, causing a loss of confidence in the banking system.

International Factors: The global economy was interconnected, and the crisis was exacerbated by economic troubles in Europe, especially in Britain, leading to a withdrawal of foreign investments from the U.S.

Impact:

Unemployment: As businesses failed and investments dried up, unemployment rates soared across the country.

Business Failures: Thousands of businesses went bankrupt, including many railroad companies, leading to a loss of jobs and significant economic downturn.

Stock Market Crash: The stock market experienced a severe crash, wiping out significant amounts of wealth.

Currency Crisis: The panic led to a severe liquidity crisis, and the government's gold reserves fell drastically.

Social Unrest: The widespread poverty and unemployment triggered protests and social unrest among workers and farmers, leading to labor strikes and demonstrations.

Political Response: The economic crisis influenced the political landscape, with many citizens demanding changes in economic policies and the government's role in regulating the economy.

Recovery:
The Panic of 1893 was a prolonged economic downturn, and recovery was slow and gradual. The economic situation began to improve in the late 1890s, partly due to the government's efforts to restore confidence in the financial system and stabilize the currency. Additionally, the Klondike Gold Rush of the late 1890s contributed to economic growth and helped alleviate some of the effects of the crisis.

May 5, 1893

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