The Panic of 1893 was a serious economic depression in the United States that began in 1893. Similar to the Panic of 1873, it was marked by the collapse of railroad overbuilding and shaky railroad financing, resulting in a series of bank failures. One of the first clear signs of trouble came on February 23, 1893, with the bankruptcy of the Philadelphia and Reading Railroad. Upon becoming President, Cleveland repealed the Sherman Silver Purchase Act, which he felt was mainly responsible for the economic crisis. He was right in repealing this act because the Sherman Silver Purchase Act of 1890 required the U.S. government to buy millions of ounces of silver (driving up the price of the metal and pleasing silver miners). People attempted to redeem silver notes for gold, but the statutory limit for the minimum amount of gold in federal reserves was reached and US notes could no longer be successfully redeemed for gold. As a result of the panic, stock prices fell, 600 banks were closed, 15 000 businesses failed, and farms were closing down. Many industrialists and farmers alike were hurt.