CG Learn Article 4 Depression Expo

CAMELLIA GRACE LEARN ARTICLE #4

A Depression, an Expo, and a Future President

Panic of 1893

Broughton, Charles. “The Recent Panic Scene in the New York Stock Exchange on the Morning of Friday, May 5th.” 1893. Photograph. Library of Congress, Washington, DC

The Panic of 1893 was one of the most severe economic depressions in United States history, lasting eight months. It was triggered by a series of events that undermined public confidence in the nation’s financial system. One such event occurred when the Philadelphia and Reading Railroad went bankrupt in February 1893, soon followed by the collapse of other major railroads and banks. Overbuilding of railroads and heavy borrowing had created an unsustainable bubble, and when it burst, investors panicked. The resulting chain reaction caused thousands of businesses to fail, millions to lose their jobs, and the stock market to plummet.

At the heart of the panic was a major loss of faith in the gold standard. Many Americans, especially farmers and laborers, supported the Free Silver movement, believing that expanding the money supply with silver would ease debt and stimulate the economy. With the passage of the Sherman Silver Purchase Act of 1890, the U.S. government was required to purchase 4.5 million ounces of silver each month. In return, the Treasury issued paper notes redeemable for either gold or silver.

However, this policy had unintended consequences. It decreased the value of silver bullion and increased public fear that silver dollars or Treasury notes could not be converted to gold. This resulted in a run on the Treasury’s gold reserves. On May 5, 1893, the Dow Jones Industrial Average recorded a 24 percent drop in a single day—one of the largest declines in its history.

The economic depression that followed was devastating. Unemployment soared to about 20 percent, with even higher rates in some states. Breadlines and homeless encampments became common in cities. Agricultural prices collapsed, and industrial output shrank dramatically. Five hundred banks failed, farmers shut down operations, and 15,000 businesses closed their doors. The Pullman Strike of 1894, sparked by wage cuts during the downturn, reflected growing social unrest and class tension.

The Panic of 1893 marked a turning point in U.S. economic history. It exposed weaknesses in unregulated capitalism and the dangers of speculative investment. The crisis also reshaped American politics, fueling the rise of the Populist movement and paving the way for Progressive Era reforms aimed at stabilizing the economy.

Chicago World's Fair

Graham, Charles S. Along the Midway Plaisance. 1893. Color plate. The Field Museum, Chicago.

The Chicago World’s Fair of 1893, officially named the World’s Columbian Exposition, was held in Chicago’s Jackson Park and Midway Plaisance, covering over 600 acres. It lasted six months, from May 1 to October 31, 1893. The fair commemorated the 400th anniversary of Christopher Columbus’s first voyage to America and showcased new technology, art, horticulture, and exhibits from nations around the world.

The exposition drew more than 27 million visitors who explored over 200 grand buildings and landscaped grounds. Among its most famous attractions was the first Ferris wheel, designed by George Ferris as America’s answer to the Eiffel Tower. Other innovations introduced at the fair included moving walkways, alternating current electricity, and widespread electric lighting.

The fair also debuted popular consumer products such as Juicy Fruit gum, Cream of Wheat, and Cracker Jack. On the Midway, performers included escape artist Harry Houdini, pianist Scott Joplin, and Buffalo Bill Cody’s Wild West Show.

Beyond its technological marvels, the exposition celebrated art, culture, and architecture from around the world. It highlighted social issues of the time, including women’s achievements in the Women’s Building and cultural exhibits from numerous nations.

Although the World’s Columbian Exposition was a resounding success, it reflected the racial and social inequalities of its era. African Americans and Indigenous peoples were largely excluded from meaningful participation. The fair also ended in tragedy. Two days before its scheduled closing, Chicago’s mayor, Carter Harrison III, was assassinated. The closing ceremonies were canceled for a public memorial service. Despite this sorrowful ending, the fair remains a powerful symbol of American optimism and progress.

Rough Riders

Johnston, Frances Benjamin.Montauk Point Rough Riders — Col. Roosevelt. 1898. Photograph. Library of Congress, Washington, DC.

In January 1898, the U.S. Navy sent the armored ship USS Maine to Havana Harbor, Cuba, during the Cuban War of Independence from Spain. The United States had strong economic interests in the region and supported Cuban independence from Spanish rule.

On February 15, 1898, an explosion destroyed the USS Maine, killing 262 sailors. Only 94 survived. Although the cause of the explosion remains debated, political tensions and national sentiment led many Americans to blame Spain. On April 25, 1898, the United States officially declared war on Spain.

At the time, Theodore “Teddy” Roosevelt was serving as Assistant Secretary of the Navy. A strong supporter of the war, Roosevelt resigned his post to help form the First U.S. Volunteer Cavalry. Leonard Wood, a decorated Army doctor, was appointed Colonel, and Roosevelt became Lieutenant Colonel.

Wood and Roosevelt recruited thousands of applicants but accepted only men accustomed to harsh conditions and physical labor. Those selected included veterans, retired policemen, miners, athletes, hunters, frontiersmen, gamblers, and cowboys. Because of their rugged backgrounds, the regiment became known as the “Rough Riders.”

The Rough Riders arrived in Cuba on June 23, 1898, and soon entered battle against Spanish forces. Their most famous engagement occurred on July 1, 1898, at the Battle of San Juan Heights. Though forced to fight on foot due to a shortage of horses, the Rough Riders charged up Kettle Hill under heavy enemy fire.

With Roosevelt leading the advance, they helped capture key Spanish positions. Their bravery contributed to the American capture of Santiago, marking a turning point in the war and elevating Roosevelt to national fame. His leadership during the conflict later helped propel him to the presidency.

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