To celebrate its 150th anniversary, Banker & Tradesman is highlighting significant moments in the history of Massachusetts’ real estate and banking industries. To suggest a topic, email editorial@thewarrengroup.com.
What: The Panic of 1893
Where: Nation-wide
When: Feb. 26, 1893
- One of the most destructive financial crises in American history hove into the public eye on Feb. 26, 1893, when the vital Philadelphia & Reading Railroad went into receivership.
- Widespread speculation in dubious railroad stocks and anxiety over the falling price of silver, which backed many U.S. banknotes, set off bank runs and a credit crunch across the country. The ensuing depression lasted until 1897.
- Bank failures in Massachusetts were limited in 1893, but the public was so panicked in July and August that some local lenders required advance notice of deposit withdrawals.
“[B]anks all over the country are hoarding up currency in anticipation of being asked for it by depositors, and the aggregate is tremendous.”
— J.S. Williams, treasurer of the Salem Five Cents Savings Bank, to the Boston Globe on Aug. 4, 1893