A boom in railroad construction had followed …

Years: 1873 - 1873
February

A boom in railroad construction had followed the American Civil War.

Thirty-three thousand miles (fifty-three thousand kilometers) of new track have been laid across the country between 1868 and 1873, largely by Chinese, Scandinavian and Irish immigrants.

Much of the craze in railroad investment has been driven by government land grants and subsidies to the railroads.

At this time, the railroad industry is the nation's largest employer outside of agriculture, and it involves large amounts of money and risk.

A large infusion of cash from speculators has caused abnormal growth in the industry as well as overbuilding of docks, factories and ancillary facilities.

At the same time, too much capital is involved in projects offering no immediate or early returns.

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