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Today in History: Jay Cooke collapse triggers 1873 banking panic

By Drooid · Sep 18, 2026, 10:34 AM UTC · How we work

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On September 18 1873, Jay Cooke & Company, a Philadelphia bank that had financed the Union war effort and the Northern Pacific Railway, declared bankruptcy, sparking the Panic of 1873. The collapse triggered a transatlantic financial crisis that deepened into a depression lasting until 1877 in the United States and Europe.

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Story summary

On September 18 1873, Jay Cooke & Company, a Philadelphia bank that had financed the Union war effort and the Northern Pacific Railway, declared bankruptcy, sparking the Panic of 1873. The collapse triggered a transatlantic financial crisis that deepened into a depression lasting until 1877 in the United States and Europe.