Economic history of the United States
Panic of 1873 created one of the worst and longest depressions in American history, seriously affecting every aspect of the economy and bringing the railroad expansion to a halt. The New York Stock Exchange closed for ten days. Of the country's 364 railroads, 89 went bankrupt, a total of 18,000 businesses failed between 1873 and 1875, unemployment reached 14% by 1876, during a time which became known in Britain as the Long Depression. Politically, the Democrats took control of Congress in 1874, the election of 1876 was deadlocked.
Scranton general strike
The Long Depression, sparked in the US by the Panic of 1873, had far reaching implications for US industry, shuttering more than a hundred railroads in the first year and cutting construction of new rail lines from 7,500 miles of track in 1872 to 1,600 miles in 1875. Approximately 18,000 businesses failed between 1873, and in 1875, production in iron and steel alone dropped as much as 45%, and a million or more lost their jobs. In 1876 alone, 76 railroad companies went bankrupt or entered receivership.