jan 1, 1873 - Panic of 1873

Description:

An economic crisis that occurred during Reconstruction.
Causes: The government was unable to properly regulate companies that abused economic laws due to it just coming out of a the Civil War. Also, lots of banks overextended themselves and put more money into railroads than they could afford. Therefore, many declared bankruptcy and closed and a chain reaction occurred.
Historical Impact: The panic led to a cut in wages and poorer working conditions. Many worker strikes occurred throughout the state and federal troops had to be sent to stop them. Not to mention, employment rates quickly rose too.

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