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Panic of 1873

The Panic of 1873 was a serious downturn in the economy of the United States United States

The United States of America, also known as the United States, the U.S., the U.S.A., a... 

 that was precipitated by the bankruptcy on September 18, 1873 of the Philadelphia banking firm Jay Cooke Jay Cooke

Jay Cooke, American [i] financier, was born at Sandusky, Ohio [i], the son of Eleutheros Cooke [i] ... 

 and Company. It was one of a series of economic crises in the 19th and early 20th centuries. The end of the Civil War American Civil War

The American Civil War was a sectional conflict in the United States of America [i] between the federal ... 

 saw a boom in railroad construction, with 35,000 miles of new track being laid across the country between 1866 and 1873. The railroad industry, at the time the nation's largest employer outside of agriculture, involved large amounts of money and risk. A large infusion of cash from speculators caused abnormal growth in the industry.

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1874   The United States Greenback Party is established as a political party Political party

A political party is an organization that seeks to attain political [i] power within a government [i] ... 

 made primarily of farmers financially hurt by the Panic of 1873.



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The Panic of 1873 was a serious downturn in the economy of the United States United States

The United States of America, also known as the United States, the U.S., the U.S.A., a... 

 that was precipitated by the bankruptcy on September 18, 1873 of the Philadelphia banking firm Jay Cooke Jay Cooke

Jay Cooke, American [i] financier, was born at Sandusky, Ohio [i], the son of Eleutheros Cooke [i] ... 

 and Company. It was one of a series of economic crises in the 19th and early 20th centuries.

The end of the Civil War American Civil War

The American Civil War was a sectional conflict in the United States of America [i] between the federal ... 

 saw a boom in railroad construction, with 35,000 miles of new track being laid across the country between 1866 and 1873. The railroad industry, at the time the nation's largest employer outside of agriculture, involved large amounts of money and risk. A large infusion of cash from speculators caused abnormal growth in the industry. Cooke's firm, like many others, was invested heavily in the railroads.

President Ulysses S. Grant Ulysses S. Grant

Ulysses S. Grant was an American [i] soldier and politician who was elected the 18th President of the United States [i] ... 

's monetary policy of contracting the money supply made matters worse. While business was expanding, the money they needed to finance it was becoming more scarce.

Cooke and other entrepreneurs had planned to build a second transcontinental railroad, called the Northern Pacific Railway Northern Pacific Railway

The Northern Pacific Railway was a railway that operated in
... 

. Cooke's firm provided the financing. But on September 18, the firm realized it had become overextended and declared bankruptcy.

The firm's bankruptcy created a domino effect, causing major upset to the economy of the United States. The New York Stock Exchange New York Stock Exchange

The New York Stock Exchange , nicknamed the "Big Board," is a New York City [i]-based stock exchange [i] ... 

 closed for 10 days. Of the country's 364 railroads, 89 went bankrupt. A total of 18,000 businesses failed between 1873 and 1875. Unemployment Unemployment

In economics [i], a person willing to work at a prevailing wage rate yet is unable to find a paying job [i]... 

 reached 14 percent by 1876, during a time which became known as the Long Depression..

By 1877, wage cuts and poor working conditions caused workers to strike, preventing the trains from moving. President Rutherford B. Hayes Rutherford B. Hayes

Rutherford Birchard Hayes was an American politician [i], lawyer [i]... 

 sent in federal troops in an attempt to stop the strikes. Fights between strikers and troops killed more than 100 and left many more injured. The tension between workers and the leaders of banking and manufacturing lingered on well after the depression itself lifted in the spring of 1879, the end of the crisis coinciding with the beginning of the great wave of immigration into the United States United States

The United States of America, also known as the United States, the U.S., the U.S.A., a... 

 which would last until the early 1920s 1920s

The 1920s was a decade [i] sometimes referred to as the "Jazz Age [i]" or the "Roaring Twenties [i]," us ... 

.

See also

  • Long Depression
  • Panic of 1819
  • Panic of 1837 Panic of 1837

    The Panic of 1837 was an economic depression [i], one of the most severe financial crises in the history of the United States [i] ... 

  • Panic of 1857
  • Panic of 1884
  • Panic of 1890
  • Panic of 1893
  • Panic of 1896
  • Panic of 1901
  • Panic of 1907
  • Panic of 1910-1911