Panic of 1896
Encyclopedia
The Panic of 1896 was an acute economic depression
in the United States
that was less serious than other panics of the era precipitated by a drop in silver reserve
s and market concerns on the effects it would have on the gold standard
. Deflation of commodities prices drove the stock market
to new lows in a trend that began to reverse only after the 1896 election
of William McKinley
. The failure of the National Bank of Illinois in Chicago
is remembered as one of the motivating factors in the sensational Adolph Luetgert
murder case. During the panic, call money
would reach 125 percent, the highest level since the Civil War
.
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
that was less serious than other panics of the era precipitated by a drop in silver reserve
Free Silver
Free Silver was an important United States political policy issue in the late 19th century and early 20th century. Its advocates were in favor of an inflationary monetary policy using the "free coinage of silver" as opposed to the less inflationary Gold Standard; its supporters were called...
s and market concerns on the effects it would have on the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
. Deflation of commodities prices drove the stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
to new lows in a trend that began to reverse only after the 1896 election
United States presidential election, 1896
The United States presidential election held on November 3, 1896, saw Republican William McKinley defeat Democrat William Jennings Bryan in a campaign considered by political scientists to be one of the most dramatic and complex in American history....
of William McKinley
William McKinley
William McKinley, Jr. was the 25th President of the United States . He is best known for winning fiercely fought elections, while supporting the gold standard and high tariffs; he succeeded in forging a Republican coalition that for the most part dominated national politics until the 1930s...
. The failure of the National Bank of Illinois in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
is remembered as one of the motivating factors in the sensational Adolph Luetgert
Adolph Luetgert
Adolph Louis Luetgert was a German-American charged with murdering his wife and dissolving her body in acid in one of his sausage vats at the A.L. Luetgert Sausage & Packing Company in 1897....
murder case. During the panic, call money
Call money
Call money is a short term loan made by a bank to a borrower, where unlike the more usual kinds of loan, which are for a set term, and with a payment schedule, call money is repayable on demand. Call money is used by large financial institutions in the short-term money market to obtain funds...
would reach 125 percent, the highest level since the Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
.