The Panic of 1873 was a major economic depression that began with the failure of the banking firm Jay Cooke & Company, which was heavily invested in railroads. This financial crisis led to widespread bank failures, massive unemployment, and a significant decline in the economy. The Credit Mobilier scandal, which involved corruption in railroad construction, and the Dawes Act, aimed at assimilating Native Americans, were also significant events during this period, but they were not the immediate cause of the panic. Rutherford B. Hayes was elected president in 1876, after the panic had already begun.
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