The Panic Of 1893 As One Of The Worst - 2326 Words

Throughout its history, the United States has experienced a series of panics, or economic downturns. Some financial experts believe that the way the economy is set up in this country contributes to panics being cyclical. In other words, there is no way to avoid an eventual bump in the road when it comes to the economy. The Panic of 1893 was one of the biggest in the country’s history, with unemployment across the country reaching record highs and banks failing at an alarming rate. When compared to the Great Depression that occurred decades later, the legacy of the Panic of 1893 as one of the worst we have experienced holds. To understand the Panic of 1893, one must look back 20 years to a very similar situation that arose with the Panic of 1873. The country was experiencing a post-Civil War hangover that caused the economy to experience inflation. After the war, efforts were increased to expand the railroad. These efforts required substantial investments that were mostly unbac ked. The country was already running on a large trade deficit. The large trade deficit along with these investments put a massive strain on bank reserves, which plummeted in New York City during September and October 1873 from $50 million to $17 million. Similar causes came 20 years later with the 1893 panic. Come 1893, the United States was overextending itself when it came to railroad expansion. These expansions had an unstable financial backing, similar to the 1873 panic. The result was a seriesShow MoreRelatedJIM CORW LAWS Essay1524 Words   |  7 Pagessegregation in the 1890s was not a mere expression of racism but developed out of a complex and corrupt outworking of many political causes like removal Northern troops and the disintegration of Republican influence, and economic interests like Panic of 1893, which imposed separation of blacks to avoid competition, in the impoverished, post-Reconstruction south. 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