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[[Image:COIN1894.JPG|thumb|right|370px|''Coin's Financial School'' (1894), a famous silverite book; Coin is a boy who outsmarts all the economics professors by showing the wisdom of "bimetallism" (i.e. free silver) and refuting the fallacies about gold]]

[[Image:COIN1894.JPG|thumb|right|370px|''Coin's Financial School'' (1894), a famous silverite book; Coin is a boy who outsmarts all the economics professors by showing the wisdom of "bimetallism" (i.e. free silver) and refuting the fallacies about gold]]

Unemployment reached 20% or higher. Some banks were unable to collect on mortgages, and went bankrupt after foreclosing many homes. Congress under President [[Grover Cleveland]] repealed the disastrous Sherman Silver Act in October of 1893.

Unemployment reached 20% or higher. Some banks were unable to collect on mortgages, and went bankrupt after foreclosing many homes. Congress under President [[Grover Cleveland]] repealed the disastrous Sherman Silver Act in October 1893.

The Panic of 1893 did have a significant effect, as by the close of 1893, more than 15,000 businesses and more than 640 banks were bankrupt. Large-scale strikes were frequent and often bloody.  The Depression formed the backdrop for the intensely contested elections of 1894 and 1896, which both resulted in Republican landslides and the emergence of the [[Fourth party System]].

The Panic of 1893 did have a significant effect, as by the close of 1893, more than 15,000 businesses and more than 640 banks were bankrupt. Large-scale strikes were frequent and often bloody.  The Depression formed the backdrop for the intensely contested elections of 1894 and 1896, which both resulted in Republican landslides and the emergence of the [[Fourth party System]].

== Causes ==

== Causes ==

 

People attempted to redeem silver notes for gold; ultimately the statutory limit for the minimum amount of gold in federal reserves was reached and U.S. Notes could no longer be successfully redeemed for gold.  The investments during the time of the Panic were heavily financed through bond issues with high interest payments (the most actively traded stock at the time) and went into [[Bankruptcy|receivership]] as a result of its bankers calling their loans in response to rumors regarding the NCC's financial distress.  

People attempted to redeem silver notes for gold; ultimately the statutory limit for the minimum amount of gold in federal reserves was reached and U.S. Notes could no longer be successfully redeemed for gold.  The investments during the time of the Panic were heavily financed through bond issues with high interest payments (the most actively traded stock at the time) and went into [[Bankruptcy|receivership]] as a result of its bankers calling their loans in response to rumors regarding the NCC's financial distress.  

The depression was a major issue in the debates over [[Bimetallism]]. The Republicans blamed the Democrats and scored a landslide victory in the 1894 state and Congressional elections.  The [[Populists]] lost most of their strength and had to support the Democrats in 1896. The presidential election of 1896 was fought on economic issues, and was marked by a decisive victory of the pro-gold, high-tariff Republicans led by [[William McKinley]] over pro-silver [[William Jennings Bryan]].

The depression was a major issue in the debates over [[Bimetallism]]. The Republicans blamed the Democrats and scored a landslide victory in the 1894 state and Congressional elections.  The [[Populists]] lost most of their strength and had to support the Democrats in 1896. The presidential election of 1896 was fought on economic issues, and was marked by a decisive victory of the pro-gold, high-tariff Republicans led by [[William McKinley]] over pro-silver [[William Jennings Bryan]].

The U.S. economy finally began to recover in 1896. After the election of Republican McKinley confidence was restored and the economy began 33 years of rapid growth.<ref> There were small dips before the Great Depression, such as the [[Panic of 1907]] and a sharp recession in 1920-21.</ref>.

The U.S. economy finally began to recover in 1896. After the election of Republican McKinley confidence was restored and the economy began 33 years of rapid growth.<ref>There were small dips before the Great Depression, such as the [[Panic of 1907]] and a sharp recession in 1920-21.</ref>

[[Image:DOROTHY1.JPG|thumb|280px|Denslow's drawing of scarecrow hung up on pole and helpless, from 1st edition of book, 1900; Denslow probably was inspired by the 1896 ''Puck'' cartoon.]]

[[Image:DOROTHY1.JPG|thumb|280px|Denslow's drawing of scarecrow hung up on pole and helpless, from 1st edition of book, 1900; Denslow probably was inspired by the 1896 ''Puck'' cartoon.]]

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[[Category : Economic Preparedness]]

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[[Category:United States History]]

[[Category:United States History]]

[[Category:Economic History]]

[[Category:Economic History]]