financial panic began and led to an economic depression on may 10, 1837.
financial panic began and led to an economic depression on may 10, 1837.
when did financial panic begins and leads to an economic depression?
may 10 , 1837
Na
Na
bullet::::- 1893: the panic of 1893 set off a widespread economic depression in the united states that lasts until 1896. one of the first signs of trouble was the bankruptcy of the philadelphia and reading railroad, which had greatly over-extended itself, on february 23, 1893, ten days before grover cleveland's second inauguration. some historians consider this bankruptcy to be the beginning of the panic. as concern of the state of the economy worsened, people rushed to withdraw their money from banks and caused bank runs. the credit crunch rippled through the economy. a financial panic in the united kingdom and a drop in trade in europe caused foreign investors to sell american stocks to obtain american funds backed by gold. people attempted to redeem silver notes for gold; ultimately the statutory limit for the minimum amount of gold in federal reserves was reached and us notes could no longer be successfully redeemed for gold. investments during the time of the panic were heavily financed through bond issues with high interest payments. the national cordage company (the most actively traded stock at the time) went into receivership as a result of its bankers calling their loans in response to rumors regarding the ncc's financial distress. as the demand for silver and silver notes fell, the price and value of silver dropped. holders worried about a loss of face value of bonds, and many became worthless. a series of bank failures followed, and the northern pacific railway, the union pacific railroad and the atchison, topeka & santa fe railroad failed. this was followed by the bankruptcy of many other companies; in total over 15,000 companies and 500 banks failed (many in the west). according to high estimates, about 17%–19% of the workforce was unemployed at the panic's peak. the huge spike in unemployment, combined with the loss of life savings by failed banks, meant that a once-secure middle-class could not meet their mortgage obligations. as a result, many walked away from recently built homes. from this, the sight of the vacant victorian (haunted) house entered the american mindset.
1890s