Final answer:
The Panic of 1873, also known as the Great Depression of the 1870s, was caused by overinvestment in the railroad industry and a drop in the value of silver. This led to a decline in available cash for railroad investments and caused financial difficulties for many businesses.
Step-by-step explanation:
The Panic of 1873, also known as the Great Depression of the 1870s, had significant economic effects. One of the main causes was overinvestment in the railroad industry, which led to a decline in capital resources when the value of silver in America dropped. This resulted in a decrease in available cash for railroad investments. As a result, many large businesses holding worthless railroad bonds suffered financially.