What was the most significant outcome of the Panic of 1873?

What was the most significant outcome of the Panic of 1873?

As a result, the Panic of 1873 led to the longest recorded economic downturn in modern history, spanning from October 1873 to March 1879, according to the National Bureau of Economic Research. By 1873, most developed nations in Europe and North America had experienced the transition to industrial capitalism.

What is the impact of the 1873 panic on reconstruction?

The financial panic of 1873 and the subsequent economic depression helped bring Reconstruction to a formal end. Across the country, but especially in the South business failures, unemployment, and tightening credit heightened class and racial tensions and generated demands for government retrenchment.

What was the Panic of 1873 & How did it affect workers?

As with the panic of 1837, national unions were devastated by the panic of 1873. Their financial resources dried up almost immediately, preventing them from operating or funding members during strikes. In addition, the sheer number of unemployed workers had abolished their striking strength.

What ends as a result of reconstruction?

Reconstruction ended with the contested Presidential election of 1876, which put Republican Rutherford B. Hayes in office in exchange for the withdrawal of federal troops from the South. Republicans and Democrats responded to the economic declines by shifting attention from Reconstruction to economic recovery.

What happened in the US in 1873?

Overview. The Panic of 1873 triggered the first ‘Great Depression’ in the United States and abroad. Lasting from September 1873 until 1878/9, the economic downturn then became known as the Long Depression after the stock market crash of 1929.

How did the Panic of 1893 impact farmers?

Farmers were perhaps the hardest hit by the depression of 1893. Across the nation, about 29 percent of farmers were paying on mortgage loans (money loaned to them by banks so that they could live on and farm their property). One expert estimated that by 1890, 2.3 million farm loans were worth more than $2.2 billion.

When did the Panic of 1873 start and end?

Panic of 1873. The Panic of 1873 triggered the first ‘Great Depression’ in the United States and abroad. Lasting from September 1873 until 1878/9, the economic downturn then became known as the Long Depression after the stock market crash of 1929.

What was the cause of the railroad Panic of 1873?

The railroad industry in the United States had seen major growth in the decades before 1873, driven in part by strong European interest in bonds issued by railroad companies. The failure of Jay Cooke & Co., heavily invested in railroad bonds, triggered a crisis in the railroad industry.

How many trade unions were there during the Panic of 1873?

In the period between 1863 and 1873, 26 national trade unions formed. Combined with the six prewar organizations, the 32 national trade unions had a collective membership of 300,000]

What did Jay Cooke do in the Panic of 1873?

Jay Cooke’s firm had been the government’s chief financier of the Union military effort during the Civil War. The firm then became a federal agent in the government financing of railroad construction. The railroad industry involved a huge amount of money — and risk.