How did the panic of 1873 originate?

The Panic of 1873 originated primarily from overexpansion in the railroad industry and an ensuing financial crisis. It began when the banking firm Jay Cooke & Company, heavily invested in railroad bonds, declared bankruptcy, triggering a chain reaction of bank failures and a credit crunch. This loss of confidence led to widespread economic downturn, high unemployment, and a prolonged depression known as the Long Depression, which lasted for several years. Factors such as speculative investments and a contraction in the European economy also contributed to the crisis.