1893 – 1896
The 1890s recession, also referred to as the panic of 1893, was brought on by the failure of the United States Reading Railroad. The failure prompted European investors to then withdraw their investments, and left the U.S. financial system in a shattered mess.
First, the failure of the railroad put many workers out of business, and so the unemployment rates skyrocketed. Also, when European investors pulled their support, this led to a stock market and banking collapse that left what remained of a stable U.S. economy in tatters, and left America in a definite, defined recession.
To make things worse, a run on the gold supply incited panic in many, and confidence in both the banks and the currency plummeted. Again, we see how America is so reliant on other economies for things to work, just like many other economies rely on the U.S. economy for things to go well.