Long Depression
In the United States, economists typically refer to the Long Depression as the Depression of 1873–1879, kicked off by the Panic of 1873, and followed by the Panic of 1893, book-ending the entire period of the wider Long Depression. The National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction. In the United States, from 1873 to 1879, 18,000 businesses went bankrupt, including 89 railroads. Ten states and hundreds of banks went bankrupt. Unemployment peaked in 1878, long after the initial financial panic of 1873 had ended. Different sources peg the peak U.S. unemployment rate anywhere from 8.25% to 14%.
Reading Railroad Massacre
The Long Depression, sparked in the United States by the Panic of 1873, had extensive implications for US industry, closing more than a hundred railroads in the first year and cutting construction of new rail lines from of track in 1872 to in 1875. Approximately 18,000 businesses failed between 1873 and 1875, production in iron and steel dropped as much as 45 percent, and a million or more lost their jobs. In 1876, 76 railroad companies went bankrupt or entered receivership in the US alone, and the economic impacts rippled through many economic sectors throughout the industrialized world.