Economy In The 1890s

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The economy in the 1890s when there was a depression that hit in 1893/94 The economy in the 1890s was a massive worldwide economic crisis, the depression started in 1893. The depression of 1893 was a serious economic downward in the United States. “It was marked by the collapse of railroad overbuilding and shaky railroad financing which set off a series of bank failures”. The depression of 1893 was known as the worst depression experienced by the United States. Investments during the time of the depression were financed through bond issues and they included high interest payments. “The huge spike in unemployment, combined with the loss of life savings kept in failed banks, meant that a once secure middle class could not meet their mortgage obligations”. A solution to limit the supply of money was the practice in the Gilded Age which it was to tie the dollar to gold.…show more content…
Railroads were over-built, and many companies continued growth by taking over competitors, endangering their own stability”. During this time new mines were opened, and many products began to flood the market, especially silver. It was impressive after the great success of the railroads, how a quarter of the nation's railroads went into bankrupt. Some banks had failed, then some Railroads failed as well, this includes the Northern Pacific Railway, the Union Pacific Railroad and the Atchison, Topeka & Santa Fe Railroad. People urged to withdraw their money from the banks as concern of the economy which caused bank runs. The government pledged to convert each dollar into a fixed amount of

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