 The panic of 1907 occurred during a lengthy economic contraction — measured by the National Bureau of Economic Research as occurring between May 1907 and June 1908 . The interrelated contraction , bank panic and falling stock market resulted in significant economic disruption . Industrial production dropped further than after any previous bank run , while 1907 saw the second @-@ highest volume of bankruptcies to that date . Production fell by 11 % , imports by 26 % , while unemployment rose to 8 % from under 3 % . Immigration dropped to 750 @,@ 000 people in 1909 , from 1 @.@ 2 million two years earlier . 
