Question

The bankruptcy of which company initiated the Panic of 1873? .

Answer 1

Northern Pacific Railroad is your answer

Answer 2

Answer:

The bankruptcy of Jay Cooke & Company, is the right answer.

Explanation:

Following the end of the Civil War in the United States, the business of the railroad industry was booming. In the years between 1866- 1873 a total of 1873, 35,000 miles of new railway lines were concocted throughout the country. The expansion of this industry attracted banks and other major industries to invest their money in the Railroad industries. Accordingly, when the Jay Cooke and Company, a banking firm that invested a huge amount in the railroad industry, shut its doors on 18th September 1873, a significant financial panic swept the country.