Question

The Panic of 1893 was brought about by two primary reasons. What were they?

Lower tariffs made it more difficult for American companies to sell abroad.
A run on the Federal reserves of gold caused supplies to become low.
Too many people bought items on credit and were unable to pay it back.
A number of railroads became financially overextended and went bankrupt.

Answer 1

There were a number of causes for the Panic of 1893. Two, however,
stand out. First, a wheat crop failure and a coup (both in
Argentina) caused investors to make a run of the US Treasury for
gold. Second, railroad speculation and overbuilding caused runs on
regular banks, especially as the price of silver fell due to the
flooding of the market with silver from new mines.

Answer 2

D

Answer 3

d