America in Crisis: The Panic of 1893

As the new century approached, a national crisis began to develop in the United States. The nation faced a severe depression, nationwide labor unrest and violence, and the government’s inability to fix any of the occurring problems. The Panic of 1893 ravaged the nation and became the worse economic crisis of its time. The depression’s ruthlessness contributed to social unrest and weakened the monetary system’s strength, leading to a debate over what would be the foundation of the national currency. As the era ended, the US sought to increase its power and strength. America began expanding its oversees empires, eventually drawing itself into numerous war efforts and creating an anti-imperialist movement that challenged the government. At the turn of the century, America became engrossed in numerous economic and social tribulations, as well as foreign problems rooted in imperialism and the pursuit of the new manifest destiny.
The Panic of 1893 was one of the most grim and profound problems that plagued America at the end of the 19th century. The financial catastrophe began in May of 1893 when two companies – The Philadelphia and Reading Railroad and The Cordage Company declared bankruptcy after failing to fulfill payments on their loans. The joint financial failures of the companies sparked a crash in the stock market. This served as a catalyst for a surge of bank failures because many New York banks were big investors in the Stock Market. The financial disaster began in New York and soon permeated its way throughout the country. Over a six-month period, over 8,000 businesses, 156 railroads, 400 banks failed, and 20% of Americans were unemployed By July of 1893, there was massive unemployment in factories and extensive wage cuts....

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...currency. Disagreement over the proper approach to the issue caused deep political divides that further weakened peoples trust and faith in the government. Many viewed the government as weak and incompetent to handle the pressing issues of this decade. America not only faced domestic economic and social problems but also problems abroad. An enthusiastic imperial movement created resentment towards the US government as the US was committed atrocities overseas in an effort to maintain its colonies. The strong anti-imperialism movement that followed help paint a picture of a violent and brutal United States that slaughtered everything that stood in its way of building a strong overseas empire. The numerous problems that the US faced paved way for an era of reform that was directed at enforcing direction and integrity on a society in crisis – The Progressive Movement.