In United States economic history, the bankruptcy of which company triggered the financial crisis known as the Panic of 1873?

Introduction / Context:
This question examines your understanding of a major nineteenth century financial crisis in the United States known as the Panic of 1873. Economic crises often begin when a key bank or financial firm fails, causing panic among investors and depositors. Identifying the company whose collapse triggered this panic is a common test of knowledge in economic history.

Given Data / Assumptions:
• The specific event is the Panic of 1873 in the United States. • The question asks which company's bankruptcy initiated this crisis. • The options list several well known business names, some of which are not related to the event. • We need to distinguish the actual failing firm from unrelated later corporations.

Concept / Approach:
Jay Cooke and Company was a major American banking and financial house that had been heavily involved in financing railroads, especially the Northern Pacific Railroad. When the firm could not sell enough bonds to cover its commitments, it suspended payments and effectively went bankrupt in 1873. This failure shook public confidence in the financial system and helped trigger a wider panic and economic depression, which came to be known as the Panic of 1873.

Step-by-Step Solution:
Step 1: Recall that the Panic of 1873 was linked to railroad overexpansion and speculative investment. Step 2: Identify Jay Cooke and Company as the banking firm most associated with financing these ventures. Step 3: Remember that its collapse sent shockwaves through the financial markets. Step 4: Compare this information with the list of companies in the options. Step 5: Choose Jay Cooke and Company as the firm whose bankruptcy initiated the panic.

Verification / Alternative check:
Historical accounts of the Long Depression and the Panic of 1873 consistently mention the suspension of Jay Cooke and Company on financial markets as the immediate trigger. While other railroad companies and industries were affected, and many later corporations such as Standard Oil and major steel companies became famous later, the specific initial shock is always linked to Jay Cooke and Company. This confirms that option b is accurate.

Why Other Options Are Wrong:
Republic Steel Company: A later steel corporation, not central to the events of 1873. Standard Oil Company: An oil trust associated with John D. Rockefeller, but not the firm that triggered the Panic of 1873. Carnegie Steel Company: Part of the steel industry growth, not the bank whose failure started the panic. Union Pacific Railroad Company: Railroads were heavily involved in the period, but the question focuses on the financial house whose bankruptcy triggered the crisis, which was Jay Cooke and Company.

Common Pitfalls:
Many learners recognise names like Standard Oil and Carnegie Steel because they are famous, and may be tempted to choose them when unsure. To avoid this, remember that the Panic of 1873 is a story of railroad financing and a banking house collapse, not primarily of oil or steel tycoons. Associating Jay Cooke and Company directly with the panic helps you avoid confusion with other industrial giants of the era.

Final Answer:
The company whose bankruptcy initiated the Panic of 1873 was Jay Cooke and Company.