The Panic of 1873 was caused by a decrease in the demand for silver combined with the backlash from the railroad boom after the Civil War. Railroad construction increased after the 1860s, investors poured money into the endeavor but received no immediate return on their investment. The iron industry had benefited from the growth of railroads and subsequently took a financial loss. Smaller companies, such as those located in Kentucky, were forced to close while lager corporations were able to survive. Courtesy of the Library of Congress.