What Happened in History: Browse Historical Facts on Kudos 365

The Panic of 1893, was one of the most severe financial crises in the history of the U.S. triggering a depression that lasted until 1897. The crisis started with a a slow down of economic activity and a large decline in U.S. Treasury gold reserves, raising the rates of defaults on loans and weakening banks’ balance sheets. Fearing for the safety of their deposits, men and women began to withdraw funds from banks. Fear spread and withdrawals accelerated, leading to widespread runs on banks. The economy remained in recession until the following summer. According to some estimates, industrial production fell by 15.3% and unemployment rose as high as 19%. After a brief pause, the economy slumped into recession again in late 1895 and did not fully recover until mid-1897. More