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One of the causes for the Panic of 1893 can be traced back to [[Argentina]]. Investment was encouraged by the Argentine agent bank, [[Barings Bank|Baring Brothers]]. However, the 1890 wheat crop failure and [[Revolution of 1893, Argentina|a coup in Buenos Aires]] ended further investments. Because European investors were concerned that these problems might spread, they started a run on gold in the [[United States Treasury|U.S. Treasury]]. At that time, it was comparatively simple to cash in dollar investments for exportable gold.<ref>Nelson, Scott Reynolds. 2012. A Nation of Deadbeats. New York: Alfred Knopf, p. 188.</ref> During the [[Gilded Age]] of the 1870s and 1880s, the United States had experienced economic growth and expansion, but much of this expansion depended on high international commodity prices. In 1893, wheat prices crashed.<ref>Nelson, Scott Reynolds. 2012. A Nation of Deadbeats. New York: Alfred Knopf, p. 189.</ref>
One of the first clear signs of trouble came on February 20, 1893,<ref>{{cite web|url=http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=155&invol=396|title=IN RE RICE|work=Findlaw}}</ref> thirteen days before the inauguration of U.S. president [[Grover Cleveland]], with the appointment of receivers for the [[Reading Company|Philadelphia and Reading Railroad]], which had greatly overextended itself.<ref>James L. Holton, ''The Reading Railroad: History of a Coal Age Empire'', Vol. I: The Nineteenth Century, pp. 323–325, citing Vincent Corasso, ''The Morgans''.</ref> Upon taking office, Cleveland dealt directly with the Treasury crisis<ref>"[http://www.whitehouse.gov/about/presidents/grovercleveland24 Grover Cleveland] {{webarchive|url=https://web.archive.org/web/20100918164651/http://www.whitehouse.gov/about/presidents/grovercleveland24 |date=2010-09-18 }}," whitehouse.gov</ref> and successfully convinced Congress to repeal the [[Sherman Silver Purchase Act]], legislation Cleveland felt was mainly responsible for the economic crisis.<ref name="Cleveland">"[http://millercenter.org/academic/americanpresident/cleveland/essays/biography/4 Grover Cleveland] {{webarchive|url=https://web.archive.org/web/20101009012123/http://millercenter.org/academic/americanpresident/cleveland/essays/biography/4 |date=2010-10-09 }}," American President: A Reference Resource, millercenter.org</ref>
As concern for the state of the economy deepened, people rushed to withdraw their money from banks, and caused [[bank run]]s. The [[credit crunch]] rippled through the economy. A financial panic in London combined with a drop in continental European trade caused foreign investors to sell American stocks to obtain American funds backed by gold.<ref name="whitten">{{Cite web |url=http://eh.net/encyclopedia/article/whitten.panic.1893 |title=EH.Net Encyclopedia: Depression of 1893 |publisher=eh.net |accessdate=2009-04-20 |last=
== Populists ==
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==External links==
* [https://web.archive.org/web/20101214084202/http://cooperativeindividualism.org/george-henry_causes-of-business-depression.html Causes of the Business Depression] by [[Henry George]]; appeared in ''Once a Week'', a New York periodical, March 6, 1894
{{BankPanicUSA}}
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