What economic downturn was experienced in the United States in the early 1870s, largely due to over-speculation and poor fiscal policy?

The Panic of 1873 was a significant economic downturn that marked the beginning of a severe and prolonged depression. This crisis was largely attributed to over-speculation in railroads and other investments, coupled with the collapse of a major bank, Jay Cooke & Company, which had heavily invested in railroad bonds. As confidence in the financial system eroded, banks began to fail, leading to widespread economic distress, bank runs, and business closures. The repercussions of this panic resulted in a contraction of the economy that lasted for several years, leading to high unemployment rates and significant social and economic hardship.

In contrast, the Great Depression refers to the much later economic crisis that began in 1929 and is characterized by a major stock market crash and widespread financial failure, making it distinct from the events of the early 1870s. The Recession of 1893, although also a significant downturn, occurred two decades later and was influenced by factors such as international economic issues and the collapse of major industries, rather than the specific over-speculation linked to the Panic of 1873. The Panic of 1837, earlier still, involved different economic conditions and causes, including a financial crisis sparked by speculation in land and bank policies, thus distinguishing it from