1870s Recession

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1873 – 1879

The 1870s recession, also known as the Panic of 1873, was caused primarily by economic problems in Europe. This trouble ignited problems in the U.S., and brought about the failure of the Jay Cooke & Company, which at that time was the largest bank in the United States of America.

This helped to depress a post Civil War speculative bubble which had been helping the U.S. recuperate from the devastating civil war which raged only a few years before. Another contributor to the Panic of 1873 was the Coinage Act of 1873. This really contributed because it depressed the price of silver, which really hurt the North American mining interests since silver was a product of those mines.

As you can see, generally several things all happen at once to bring about recession, and this seems to have always been the case. Single problems become much more complicated when you have more than one problem to deal with.

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