Panic of 1873
In high school history lessons, the period of American history from the conclusion of the Civil War in 1865 to roughly the Spanish-American War of 1898 is prone to being glossed over. As a result, certain details are omitted, such as the time that America experienced its first downturn, which was partly brought on by the massive railroad financier Jay Cooke & Co. declaring bankruptcy in 1873. They destroyed 18,000 businesses nationally, and by 1876, unemployment had reached a height of 14%. That would have an economic impact that would persist until 1877 and would really have a longer-lasting effect on Europe, with France in particular experiencing a recession that would extend until 1879.
This took place when US labor unionization was on the rise. Chinese immigration were specifically condemned in the state of California for enabling the money pit railways and driving down wages, which led to widespread atrocities like the attack on San Francisco's Chinatown. The effects of the depression's anti-Chinese sentiment would outlast it, resulting in the passage of the Chinese Exclusion Act in 1882.
The situation for union workers was not much better because federal troops were sent to break up or even shoot at strikes, which led to the deaths of over 100 workers. The transfer of Federal funds to the former Confederate states allowed the Ku Klux Klan to continue its terror activities against Black people with full vigor, arguably costing America its reconstruction. In short, nothing threatens advancement more than a financial crisis.
- Time: 1873 – 1879
