4. Originally labeled the “Great Depression” due to its severity, the Long Depression of 1873 lasted over two decades including a record 65-month long economic contraction in the United States
Following a decade of widespread growth, fueled by the Second Industrial Revolution and the return of peace to Europe and North America, 1873 saw the beginning of a worldwide and widespread recession. Starting with the “Panic of 1873”, a financial crisis brought about primarily by unchecked speculative investments, liquid capital was rapidly drained from markets. In New York City, between September and October 1873, bank reserves dropped from more than $50 million to less than $17 million. Lasting until 1879 in the U.S., during which time the American economy continually contracted, more than 18,000 businesses in the United States were forced to declare bankruptcy.
Lasting more than a decade longer in Europe, the saga encompassed several economic disasters each worthy of the label “crisis” in their own right. The “Panic of 1884” saw more than 10,000 small businesses collapse, whilst the “Panic of 1890” induced the bankruptcy of the Baring Bank due to excessive speculative investments in Argentina. The “Panic of 1893”, lasting until 1897 with the eventual end of the Long Depression, saw the emergence of the Free Silver Movement in an effort to restore stability to financial markets in addition to the closure of more than 500 banks and 15,000 businesses. Returning to the United States, unemployment in Pennsylvania climbed to 25%, 35% in New York, and 43% in Michigan.