Causes Of The Panic Of 1893

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The Depression of 1893, also known as the Panic of 1893, was a very serious and terrible economic depression in the United States. The Depression was mostly caused by railroad overbuilding and terrible financing for them. This was the worst economic time for the United States up unto that point in American History. One of the causes was because of the corruption of the Gilded Age. But an even bigger topic would be the railroads. They were being highly speculated of being corrupt, because they were overbuilt, and they also had incurring expenses that would outstrip any revenue. New mines also filled markets with silver, and it would cause the price to fall. Grover Cleveland was the one that was to blame for this matter, even though it may not…show more content…
Farmers suffered from the malnourished economy, and they were unable to pay their taxes as a result of the deflation. Silver was a main cause of the Depression because deflation became so bad that no one could pay taxes, bills, or anything. This is why farmers so badly wanted Silver to be back in the economy because they would be able to pay their taxes. They were able to because of the cheaper bills that came from Silver. Stock prices also declined as a result of the Panic. Unemployment raised in all of the states with Pennsylvania hitting 25%, New York hitting 35%, and Michigan hitting an astronomical number of 43%. With starvation chasing right behind people, they broke rocks, chopped wood, and sewed scarves and other clothing in order to be able to exchange these items for food. Women often had to turn to prostitution in order to be able to feed their families. Mayor Hazen Pingree of Detroit began Pingree’s Potato Patch, which was a couple community gardens where people could gather for farming to help the people in his…show more content…
It was a nationwide railroad strike in the summer of 1894. After the Panic hit, people believed that the railroads were the direct result of the Panic. The American Railway Union was against the Pullman company, a corporation based in Chicago that dealt and built railroads. Eugene V. Debs was the representative for the AF of L (American Federation of Labor) and the American Railway Union. President Grover Cleveland would be on the railroads side on this one with George Pullman, the President of the Pullman Company. He sided with the railroad because when the economy is bad, the US Government tends to side with the rich aristocratic people. It is mostly because they have the money. But when the economy is good, the Government tends to side with the poor, so it goes both ways. Pullman and the Company would win the battle, and the result of the strike was
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