Causes of the Great Depression
Second, there are the monetarists, who believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms.
Great Railroad Strike of 1877
The Long Depression, beginning in the United States with the financial Panic of 1873 and lasting 65 months, became the longest economic contraction in American history, including the later more famous, 45-month-long Great Depression of the 1930s. The failure of the Jay Cooke bank in New York, was followed quickly by that of Henry Clews, and set off a chain reaction of bank failures, temporarily closing the New York stock market.