by The Severe Depression That Tested the Gold Standard and Sparked Populist Revolt
This nomination for the financiers and policymakers whose actions led to the Panic of 1893, one of the most severe depressions in U.S. history. Triggered by the bankruptcy of the Philadelphia and Reading Railroad and a run on the U.S. gold reserve (depleted by the Sherman Silver Purchase Act), the panic led to widespread bank failures, massive unemployment (over 15%), and the collapse of many railroads. “Coxey’s Army” of unemployed marched on Washington. The crisis was a direct test of the gold standard and bimetallism. It proved the vulnerability of an economy with inadequate banking reserves and conflicting monetary policies. The depression fueled the Populist and Free Silver movements, demonstrating how financial crises could radicalize politics and force fundamental debates about the monetary system.
