Banks, especially Jay Cooke and Co. , raised millions of dollars through selling bonds to finance construction. Speculators 'bet' on the railroad, gambling on the fact that settlement and opportunities to make money would follow behind the completed railway. However, construction expenses ballooned and outpaced financing. Efforts to raise more funding failed. When they could no longer pay the bills, Jay Cooke and Co. and other banking houses folded. The collapse of the railway financiers sparked high bank withdrawals, the failure of brokerage firms, and railway construction halted. By September 20th, the New York Stock Exchange suspended trading for the first time.
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To read contemporary news of the Panic of 1873, search Chronicling America for "Panic 1873" and limit by date for 1873. Sort results by date and read contemporary news of the Panic of 1873.
New York and the Panic of 1873 by Jennifer S. Lee .
New York Times: City Room,. October 14, 2008
1873: Off the Rails.
Harvard Business School Historical Collections
The Real Great Depression.
Chronicle of Higher Education
Crisis Chronicles: The Long Depression and the Panic of 1873
by Thomas Klitgaard and James Narron.
Federal Reserve Bank of New York: Liberty Street Economics.
Routledge handbook of major events in economic history., Randall E. Parker and Robert. Whaples, eds. London; New York: Routledge, 2013.
LC Call Number: HB75 .R6748 2013 OVERFLOWJ34
Catalog Record: 2012031239
Includes a chapter by Eric Lomazoff on The panic of 1873.
Townsend, Washington. The causes of the late panic, the dangers of inflation, and the remedy for our financial troubles. Washington, Gov't print. off., 1874.
LC Call Number: HG525 .T74
Catalog Record: ca08000361
Contemporary speech in Congress by Representative Washington Townsend,from Pennsylvania.
Whalen, R. Christopher. Inflated: how money and debt built the American dream Hoboken, N.J.: Wiley, 2011.
LC Call Number: HJ8101 .W43 2011
Catalog Record: 2010028553
A historical look from the early days of the country to the 21st century at the conflicting tendencies of Americans to consider themselves both fiscally responsible and open to opportunities to "get rich quick." Includes a section on the Panic of 1873.
Wicker, Elmus. Banking panics of the Gilded Age. Jefferson, NC: McFarland, 2002.
LC Call Number:
Catalog Record: 99087487
Table of contents
Additional works on this topic in the Library of Congress may be identified by searching the Online Catalog under appropriate Library of Congress subject headings. Choose the topics you wish to search from the following list of Library of Congress subject headings to link directly to the Catalog and automatically execute a search for the subject selected. For assistance in locating other subject headings which relate to this subject, please consult a reference librarian.
Banks and banking--United States--History
Bank failures--United States--History
Financial crises--United States--History