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The '''Panic of 1893''' was a brief but severe [[Recession|depression]] brought about by multiple factors, including the collapse of the Philadelphia & Reading Railroad, and the [[Sherman Silver Purchase Act]], passed three years before. Also to blame was the government's squander of federal surpluses on industrial enrichment programs. All of these events marked an underlying shift in the United States, as in the 1890 census, it was determined that for the first time, the majority of Americans did not work on farms.

The '''Panic of 1893''' was a brief but severe [[Recession|depression]] brought about by multiple factors, including the collapse of the Philadelphia & Reading Railroad, and the [[Sherman Silver Purchase Act]], passed three years before. Also to blame was the government's squander of federal surpluses on industrial enrichment programs. All of these events marked an underlying shift in the United States, as in the 1890 census, it was determined that for the first time, the majority of Americans did not work on farms.

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 Congress under President [[Grover Cleveland]] repealed the disastrous Sherman Silver Act in October of 1893.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 Congress under President [[Grover Cleveland]] repealed the disastrous Sherman Silver Act in October of 1893.

[[Image:Octops2.jpg|thumb|550px|The Populist book ''Coin's Financial School'' (1894 p. 124) blamed the Rothschild's for controlling the world's money and causing the panic]]

[[Image:Octops2.jpg|thumb|550px|The Populist book ''Coin's Financial School'' (1894 p. 124) blamed the Rothschild's for controlling the world's money and causing the panic]]

The most memorable cultural events were the [[World's Columbian Exposition|Chicago World's Fair]] of 1893. The hard times and utopian dreams that characterized the era were immortalized in L. Frank Baum's [[Wizard of Oz|''The Wonderful Wizard of Oz'' (1900)]].

The most memorable cultural events were the [[World's Columbian Exposition|Chicago World's Fair]] of 1893. The hard times and utopian dreams that characterized the era were immortalized in L. Frank Baum's [[Wizard of Oz|''The Wonderful Wizard of Oz'' (1900)]].

The [[Sherman Silver Purchase Act]] of 1890has been partially blamed for the panic. Passed in response to a large overproduction of silver by western mines, the Sherman Act required the U.S. Treasury to purchase silver using notes backed by either silver or gold. Politically the Democrats and President Cleveland were blamed for the depression.  The Democrats and Populists lost heavily in the 1894 elections, which marked the largest Republican gains in history.   

The [[Sherman Silver Purchase Act]] of 1890 has been partially blamed for the panic. Passed in response to a large overproduction of silver by western mines, the Sherman Act required the U.S. Treasury to purchase silver using notes backed by either silver or gold. Politically the Democrats and President Cleveland were blamed for the depression.  The Democrats and Populists lost heavily in the 1894 elections, which marked the largest Republican gains in history.   

Many of the western silver mines closed, and a large number were never re-opened.  A significant number of western mountain narrow-gauge railroads, which had been built to serve the mines, also went out of business.  The [[Denver and Rio Grande Railroad]] stopped its ambitious plan, then under way, to convert its system from narrow-gauge to standard-gauge.   

Many of the western silver mines closed, and a large number were never re-opened.  A significant number of western mountain narrow-gauge railroads, which had been built to serve the mines, also went out of business.  The [[Denver and Rio Grande Railroad]] stopped its ambitious plan, then under way, to convert its system from narrow-gauge to standard-gauge.   

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>.

==See also==

==See also==