“The Great Cleveland Panic of 1893”

In November, 1892, there occurred in this country a political revolution which was destined to affect most seriously the prosperity of every American industry. For the first time in almost forty years the Presidency and both branches of Congress passed into the hands of the Democratic party. This revolution, which was the result in large part of widespread discontent with existing social conditions, was of so sweeping a character, and threatened such radical changes in legislation, that thoughtful business men, including many who had supported the successful party, at once became alarmed. Radical legislation had been promised by Democratic leaders and in Democratic platforms, and business men generally foresaw that this legislation, if accomplished or attempted, would be injurious if not disastrous to the country’s material interests. In brief there was everywhere developed immediately after the Presidential election of 1892 a lack of confidence in the party which had just been entrusted with power, with no certain check upon its expressed intention to repeal the tax on State banks and to repeal the McKinley tariff. This distrust steadily grew during the winter following the election in November, and early in the spring of 1893 it was suddenly increased by the uncertain policy of the new Administration concerning the maintenance of the parity of gold and silver.