Panic of 1873 (ABC Clio)(Secondary)

The panic of 1873 was New York City Stock Exchange's collapsing of the large investment from Jay Cooke and co. because of their investing too heavily in railroad securities. The collapse affected the entire stock market, and soon other large eastern firms failed. By 1875, about 500,000 men were unemployed, and a pay decrease for other workers caused a wave of strikes and labor violence. Thousands of stock market investors were ruined by the panic and resulting economic depression. It took until the 1880s for the American enomony to start to improve.