Home > Panic of 1873

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

The firm's bankruptcy touched off a domino effect, causing the economy of the United States to collapse. The New York Stock Exchange 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 reached 14 percent by 1876Events January events January 31 The United States orders all Native Americans to move into reservations. February events February 2 The National League of Professional Baseball Clubs of Major League Baseball is formed. February 14 Alexander Graham Bell a.

By 1877Events January 1 Queen Victoria proclaimed Empress of India by the Royal Titles Act, introduced by United Kingdom Prime Minister Benjamin Disraeli. January 8 Crazy Horse and his warriors fight their last battle with the United States Cavalry ( Montana) Ja, wage cuts and poor working conditions caused workers to strike, preventing the trains from moving. President Rutherford B. HayesRutherford B. Hayes Order 19th President Term of Office March 4, 1877 March 4, 1881 Followed Ulysses S. Grant Succeeded by James Garfield Date of Birth October 4, 1822 Place of Birth Delaware, Ohio Date of Death January 17, 1893 Place of Death Fremont, Oh 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 1879Events January January 11 Anglo-Zulu War begins January 22 Zulu troops massacre British troops at the Battle of Isandlwana. At Rorke's Drift, outnumbered British soldiers drive the attackers away after hours of fighting. February February 12 At New York C, the end of the crisis coinciding with the beginning of the great wave of immigrationImmigration is the act of moving to or settling in another country or region, temporarily or permanently. An immigrant is usually someone who intends to reside permanently, and not a casual visitor or traveler. Immigration means "in-migration" into a coun into the United StatesThe United States of America also referred to as the United States U. America ¹ or the States is a federal republic in central North America, stretching from the Atlantic in the east to the Pacific Ocean in the west. It shares land borders with Canada in which would last until the early 1920sCenturies: 19th century 20th century 21st century Decades: 1870s 1880s 1890s 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s Years: 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 Events and trends Technology John Logie Baird invents the first working t.