Panic+of+1893

=Panic of 1893= Before reading this, people were face with poverty and unemployment such as the recession we are in now. Just Saying. lol P.S. Hiya!

The Panic of 1893 was a severe economic depression since 1873. Similar this was due two big railroad companies crumbled, Philadelphia and Reading Railroad and the National Cordage Company. Banks failed because of the railroad industry and they filed for bankruptcy. The events of the past week will pass into Wall Street history as the "industrial panic." As a panic it was the worst since 1873, and the full force of it fell on the industrial stocks. It fell upon them because the speculation was concentrated in that group, and it did not touch the railroad shares with any severity because so little has been doing in them as compared with the industrials. One railroad stock there had been an inflated speculation in, and it suffered as much as the industrials, Manhattan. The time of extreme stress lasted over three days. It reached its most acute stage on Friday morning, when for nearly two hours it seemed as if the whole Street would go down in a crash of bankruptcy similar to 1873.Ten Days before Grover Cleveland's second inauguration, Philadelphia and Reading Railroad Company filed bankruptcy. Many railroads were closed down and people were out of jobs. A famous strike was Pullman's Strike that address the American Railway Convention.

During the 1893, 25% of people were unemployed. Poverty rose exponentially as well. People could not afford to paid their mortgages because of their businesses were closed. Over 15,000 businesses were closed in 1893. The number of people unemployment grew 10-15% over a 5 to 6 consecutive years; this was abnormal and the only time this happen was the Great Depression of 1930. People lived in slums and left back insights on how it was back then. Layoffs and steep wage reductions threw families into desperate straits. As unemployment climbed to 20 percent in 1894, close to 2.5 million jobless men migrated in and out of cities looking for work. Chicago police stationed themselves at the railroad stations to keep tramps from coming into the city. Meanwhile, many of those who remained in the workforce were forced to take sharp pay cuts. Florence Keller was a woman in Chicago who lived during the Panic.

her link: [|Florence Keller]

Another cause of the Panic of 1893 was the gold standard. Dating back to the Civil War, gold was the monetary issue, the material used to make money for the nation. At this time, the economy was producing more where people could not buy it. This lead major cut backs in employment and production. After the first sight of the depression setting in, people made bank runs. People would go to banks and withdrawn large sums to prepare yet there would be no way for them to repay the debt.People started to redeem silver instead of gold but could not get any monetary aid. Gold was already at the minimum so it could not go out to everyone.

Farmers felt the effect; their crops were not sold because of the declining economy. Many unemployed people displayed their problems and series of strikes occurred. The Sherman Silver Act was supposed to make lives easier but failed when the supply of gold and silver was limited an over production was left. President Cleveland borrowed 65 million from J.P. Morgan to back the gold system.The bankers charged the government a hefty $7 million for this bailout — a price that angered many spectators. Popular sentiment mounted in opposition to the gold standard and in favor of the free and unlimited coinage of silver. Federal and state governments, in the meantime, with no sustained tradition of social welfare, did little to alleviate the effects of the depression on the people.



This play was written about the Panic. Here some Political Cartoons and News clippings



Resources:
 * 1) http://eh.net/encyclopedia/article/whitten.panic.1893
 * 2) http://florencekelley.northwestern.edu/historical/panic/
 * 3) http://thehistorybox.com/ny_city/panics/panics_article11a.htm
 * 4) http://www.ohiohistorycentral.org/entry.php?rec=538
 * 5) http://symonsez.files.wordpress.com/2009/03/1893panicbankrun.jpg
 * 6) http://www.palmhaven.info/Data/Docs/Art-18840524-HarpersWkly-PanicOf1884.jpg
 * 7) http://people.virginia.edu/~sfr/enam312/1893nyt.jpg
 * 8) []
 * 9) Textbook
 * 10) __In the days of Mckinley,__ Maragret leechHarper and Row publishers, new york, new york
 * 11) __Mckinley, Bryan and the people__ Paul W Glad
 * 12) http://www.encyclopedia.com/doc/1G2-2536601568.html