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The Panic of 1893 was a serious economic depression in the United States that began in that year. Similar to the Panic of 1873, this panic was marked by the collapse of railroad overbuilding and shaky railroad financing which set off a series of bank failures.
The cause of the 1893 depression, "was the failure of the country's largest employers, the Philadelphia and Reading Railroad and the National Cordage Company. A panic erupted on the stock market, after the failure of these two companies."
What is the depression of 1893?
The depression of 1893 also called as the Panic of 1893 was a national economic crisis in the United States. This economic crisis set off by the collapse of two of the country's largest employers.
Hundreds of businesses in United States had over extended themselves after borrowing money from the bank to expand their operations. When the financial crisis struck, banks and other investment firms began calling in for repayment of loans, causing hundreds of business bankruptcies across the United States.
It is estimated that over fifteen thousand businesses were closed during the Panic of 1893. This situation gave rise to unemployment, people became homeless and had difficulty in even buying food due to the lack of income.
Hence, the answer was given and explained above.
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