Panic of 1893 Facts for kids
Interesting facts about the Panic of 1893 are detailed below. The history of
Panic of 1893 is told in a factual sequence consisting of
a series of short facts providing a simple method of relating the
history and events of the Panic of 1893.
Panic of
1893
Facts for kids
Panic of 1893
Fact 1: The Panic of 1893 started when the
Philadelphia and Reading Railroad, one of the first
railroads constructed in the United States, when
bankrupt.
Panic of 1893
Fact 2: By 1871, the Philadelphia & Reading
Railroad had become the largest company in the world
attracting many investors. The company continued to
grow, became over confident in its power, invested in
land speculation, coal mining and coal haulage and
eventually over-extended its operations leading to its
collapse.
Panic of 1893
Fact 3: The president of the Philadelphia &
Reading Railroad and the Philadelphia and Reading Coal
and Iron Company was Franklin B. Gowen (February 9, 1836
– December 13, 1889), one of the 'Robber Barons' who
emerged during the era. Gowen was a key industrialist
involved in labor disputes during the
Great Railroad Strike o f 1877
and played a major role in the downfall of the
Molly Maguires.
Panic of 1893
Fact 4: The Panic of 1893 began in the United
States in February 1893
Panic of 1893
Fact 5: Major banks collapsed, ruined by over
speculation of the Philadelphia & Reading Railroad in
relation to the railroads. There were
runs on state
banks, leading to foreclosures and bankruptcies.
Panic of 1893
Fact 6: 50 railroad companies were effected, construction
was halted, more than 30 steel companies collapsed in
the wake of the railroad failures, factories were closed, businesses were ruined
and unemployment soared
Panic of 1893
Fact 7: April 1893: The
failure of major industries was followed by a crisis in
the US Government. The U.S. Treasury’s gold reserves
fell to below $65 million which sparked a financial
panic as investors as investors panicked selling off
assets and converting them to gold.
Panic of 1893
Fact 8: The government limited the supply of
money by tying the US dollar to gold. The gold supply
had dropped and the federal government reduced the
number of dollars that were printed. The government had
attempted to address the gold shortage issue in 1890 by
authorizing Sherman Silver Purchase Act enabling the
Treasury to issued dollars backed by silver, as well as
gold.
Panic of 1893
Fact 9: Devalued US Currency: The action of
backing US currency with silver resulted in the dollar
losing its value. Foreign lenders lost confidence in the
devalued US currency, dollar loans were called and
converted into gold. President Cleveland repealed the
Silver Purchase Act but this failed to reduce the panic.
Panic of 1893
Fact 10: The gold standard had a disastrous
effect on the nation's farmers who were unable to obtain
low-interest credit to sustain their businesses. The
invention of the
Mechanical Reaper and the
Grain Elevators had
led to over-production resulting in the fall of crop
prices. Farmers could not raise grain prices and
thousands of farmers lost their homes and their land.
Continued...
Panic of
1893
Facts for kids
Panic of 1893 for
kids
The info about the Panic of 1893 provides interesting facts and
important information about this important event that occured during the presidency of the 22nd and 24th President of the United States of America.
Panic of 1893 Facts for kids
Interesting history and the Panic of 1893 Facts for kids are
continued below.
Panic of
1893
Facts for kids
Panic of 1893
Fact 11: The number of
foreclosures and bankruptcies increased.
The prices of manufactured products dropped, inflation rose and credit was not available.
Thousands of Americans became
unemployed from railroad to factory workers and farmers,
many lost their homes as well as their livelihoods,
became destitute and depended on the charity of others
to survive.
Panic of 1893
Fact 12: May 1893: The collapse of the
National Cordage Company, the nation’s leading
manufacturer of rope and twine, on 4 May, 1893
exacerbated the financial crisis.
Panic of 1893
Fact 13: The national unemployment rate
approached 20% - the worst levels in US history. It is
estimated that 2.5 million desperate, jobless men moved
from city to city looking for work.
Panic of 1893
Fact 14: Within a year of the crash over 125
railroads went into receivership. Over 15,000 companies
and 600 banks were forced to close down. Wage levels
also dropped.
Panic of 1893
Fact 15: The depression led to wages being
drastically reduced which led to over 1000 strikes,
involving 750,000 workers, across the country.
Panic of 1893
Fact 16: The strikes led to violent clashes
between workers and the army as experienced in the
Pullman Strike
and the national strike by the United Mine Workers of
America.
Panic of 1893
Fact 17: A group of the unemployed called "Coxey’s
Army" marched to Washington in protest - the leaders
were arrested.
Panic of 1893
Fact 18: The banker J.P. Morgan bailed out the
federal government by loaning the Treasury $65 million
dollars in gold enabling the Treasury to issue bond
sales.
Panic of 1893
Fact 19: By the end of February 1896, the US
Treasury reserve finally reached over the $100 million
mark
Panic of 1893 Fact 20:
1896: The discovery of gold in the
Klondike in 1896 finally ended the four year depression
Panic of
1893
Facts for kids
Panic of 1893 for kids - President Grover Cleveland Video
The article on the Panic of 1893 provides detailed facts and a summary of one of the important events during his presidential term in office. The following
Grover Cleveland video will
give you additional important facts and dates about the political events experienced by the 22nd and 24th President of the
United States whose presidencies spanned from March 4, 1885 to March 4, 1889
and from March 4, 1893 - March 4,1897.
Panic of 1893
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Interesting Facts about Panic of 1893 for kids and schools
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Summary of the Panic of 1893 in US history
●
The Panic of 1893, a major
event in US history
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Grover Cleveland history timeline
of major events
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Fast, Panic of 1893
about major events in his presidency
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Foreign & Domestic
policies of President Grover Cleveland
● Grover Cleveland Presidency and
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