The Railway Mania Timeline
1836-1837
1835
Sep 1830
Sep 1825
Aug 1844
May 1837
Jul 1844
1840
Oct 1845
Aug 1845
Jul 1845
Sep 1844
Aug 1850
Apr 1850
May 1846
Nov 1845
AUGUST 1845
Market Peaks
The revitalised enthuasiasm amongst investors that followed Gladstone's interventions reaches its peak. Railway shares with a nominal value of £100 are being sold at upwards of £243 as investors look to benefit from what they see as long-lasting and reliable dividends.
august 1844
Railway Board is Created
Gladstone creates the board to accompany the recent Railway Regulations Act. The board is established to oversee the development of local tracks in order to facilitate the construction of an efficient national rail network. This serves as another indicator to investors that the government is investing in the long-term future of rail travel.
July 1845
Railway Board is Disbanded
One of the board's main objectives was to prevent unnecessary duplicate tracks from being created. However, MPs have a greater incentive to promote local interests rather than national ones. This meant that over a third of the board's recommendations were ignored and it is disbanded less than a year after being created.
May 1837
The First Bubble Bursts
Railway share prices fall by 45% after rising by 65% over the course of the previous 2 years. Economic historians have identified this event as acting as a precursor the subsequent and more damaging 'Great Railway Mania'.
september 1844
Record Low Interest Rates
The Bank of England sets the Bank Rate at 2.5%, the lowest ever set in its 150 year existence. Traditionally safe investments are now less profitable, and risky investments are easier to finance.
September 1825
First Steam-Powered Railway
The Stockton and Darlington Railway opens and becomes the world's first railway to use steam locomotives. Primarily used to transport coal, it signals the beginning of the UK integrating this revolutionary technology in its economy.
October 1845
Bubble Begins to Burst
The disbanding of the Railway Board combined with the rapid construction craze means that instead of an organised national rail network, multiple companies are competing wastefully against each other. This reaches a tipping point as not all of the authorised construction could ever be profitable.
August 1850
Abandonment Act Passes
The Abandonment of Railways Act is introduced to allow companies to fully or partly abandon licensed projects of railway track construction. The inefficiencies this caused is one of the biggest legacies of the Railway Mania. Of the 8590 miles of track authorised by Parliament during the bubble, 3560 miles were abandoned.
September 1830
First Passenger Railway
The Liverpool and Manchester Railway becomes the world's first inter-city railway network powered by steam engine. This new technology was beginning to be fully integrated into the lives of the British public.
April 1850
Market Bottoms
After a brief respite in 1846, the railway market finally reaches its bottom. From its peak in August 1845 to April 1850, the market for railway shares fell in value by 66%.
1836-1837
Parliament Increases Support
During this 2 year period, Parliament authorises the construction of 59 new railways totalling over 1500 miles of new track. Politicians are starting to get behind this 'new era' narrative.
1835
10% Annual Dividends
After starting with a stock that paid 2% dividend, the Liverpool and Manchester Railway stock is the first to reach the legal maximum of a 10% annual dividend. Investors start to reap the rewards of their gamble.
may 1846
Dissolution Act Passes
The Railway Companies Dissolution Act allows for firms that have been set up during the Mania (but not yet been granted authorisation to build tracks by Parliament) to be more easily dissolved. The government wants to prevent more railway companies from being tied up in unprofitable business ventures.
July 1844
Railways Act Passes
William Gladstone passes his Railway Regulations Act, which serves to set the standard for quality and quanity of travel. Importantly, it also gives the state the power to nationalise any railway line that generates an annual dividend of 10%. This signals to investors that the government believes in the future of the Railway market.
November 1845
Bank Rate Rises
The Bank of England increases the bank rate to 3.5%, up from 2.5% the previous month. The Bank essentially wants to burst the bubble now, before it can become any worse.
1840
Excitement Cools
Investors and politicians are still skeptical of the viability of the Railway market after the crash of 1837. For the first time since construction began, railway development reverses as more tracks are being abandoned than being built.
March 2000
NASDAQ Peaks
The tech heavy NASDAQ Composite Index closes at a record value of 5050. The index has increased by over 200% in the past 18 months. The faith of investors in the profitability of this new tech is at its all time high.
1999
Tech IPOs are in Vogue
The number of new technology Initial Public Offerings being issued reaches its peak at 371 across the year, valued at a total of $450 billion. In 2001, the total value of new tech IPOs issued will fall to $27 billion.
2000
The Rise of ECN Trading
During this period, ironically, the rise of the internet makes speculative stock market investments much easier. By 2000, 30% of stocks are being traded via Electronic Communications Networks compared to just 3% in 1993.
august 1995
Shares in Netscape go Public
Despite performing poorly against traditional metrics, Netscape's shares are in great demand. The first day of trading saw them start at $28 a share and close at $58.
December 1999
CAPE Reaches a Record High
Shiller's Price-Earnings ratio, used to assess the likelihood of future returns on assets, peaks at a value of 45. The Index has never reached this high before (or since), indicating unsustainable investment practices.
May 1989
World Wide Web is Created
Whilst working at the European Organization for Nuclear Research (CERN), Tim Berners-Lee looks to increase productivity by designing a decentralised system to upload and access documents. This technology would have unimaginably large network effects: the more people that used it, the more efficient it became.
April 2000
Bubble Begins to Burst
The sudden and rapid collapse of the tech market surprises everyone, including skeptics. In one week in April, the NASDAQ falls by 25%, a record for any single week of trading.
2002
The Internet is Here to Stay
Despite the incredible losses suffered by investors, the bubble has fundamentally reshaped society. By the end of 1993, the likes of Mosaic had meant that 14 million people were using the internet. By the end of the bubble in 2002, 663 million people are using the internet. The world will never be the same.
january 1991
World Wide Web is Public
For the first time, people outside of CERN can access this new system. However, the system is incredibily complex to navigate so early adoption remains limited.
October 2002
Market Bottoms
In the previous 30 months, the S&P 500 has lost 48% of its value and the NASDAQ has fallen by 77%. The NASDAQ will not fully recover for another 13 years. Hundreds of companies have failed and an estimated $5 trillion in market value has been lost.
June 1995
Netscape's IPO
Netscape makes the incredibly rare decision to have an Initial Public Offering before the firm has turned a profit. In combination with a desire to raise capital, the founders see this as an opportunity to market their creation.
April 1994
Mosaic is Founded
Mosaic Communications Corporation (later renamed to Netscape) is founded and serves as a web browser that makes the web more accessible to the general public. Netscape would later become the archetype of the tech start up that would define the Dot-Com bubble.
december 2001
Enrol Files for Bankruptcy
Whilst Enron was not a tech firm, the 'creative accounting' employed by the energy giant is symptomatic of the practices of American business as a whole during this period. Misinformation with regards to profitability and valuations has been rife and has impacted the decisions made by investors.
November 1998
Fed Cuts Intersts Rates
The Federal Reserve System reduces the interest rate for a 3rd time in 3 months in response to the Russian financial crisis and in order to bail out a large and important domestic hedge fund. The cut in the funds rate from 5.5% to 4.75% will later be argued as being excessive and will help to fuel the Dot-Com bubble.
July 2000
A Second Peak
Between May and July, internet stocks have risen by 42%, and the NASDAQ appears to be recovering. However, any optimism will be short-lived as from here on in, the bubble will only continue to deflate.
December 1995
Netscape Continues to Excel
Shares in Netscape now trade at $170, giving the firm a total market cap of $6.5 billion. The early success of Netscape will provide the template for tech start-ups and investors during the bubble: early IPOs are the way forward, regardless of the performance against traditional benchmarks.
The Railway Mania Timeline
William Battersby
Created on March 18, 2026
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Transcript
The Railway Mania Timeline
1836-1837
1835
Sep 1830
Sep 1825
Aug 1844
May 1837
Jul 1844
1840
Oct 1845
Aug 1845
Jul 1845
Sep 1844
Aug 1850
Apr 1850
May 1846
Nov 1845
AUGUST 1845
Market Peaks
The revitalised enthuasiasm amongst investors that followed Gladstone's interventions reaches its peak. Railway shares with a nominal value of £100 are being sold at upwards of £243 as investors look to benefit from what they see as long-lasting and reliable dividends.
august 1844
Railway Board is Created
Gladstone creates the board to accompany the recent Railway Regulations Act. The board is established to oversee the development of local tracks in order to facilitate the construction of an efficient national rail network. This serves as another indicator to investors that the government is investing in the long-term future of rail travel.
July 1845
Railway Board is Disbanded
One of the board's main objectives was to prevent unnecessary duplicate tracks from being created. However, MPs have a greater incentive to promote local interests rather than national ones. This meant that over a third of the board's recommendations were ignored and it is disbanded less than a year after being created.
May 1837
The First Bubble Bursts
Railway share prices fall by 45% after rising by 65% over the course of the previous 2 years. Economic historians have identified this event as acting as a precursor the subsequent and more damaging 'Great Railway Mania'.
september 1844
Record Low Interest Rates
The Bank of England sets the Bank Rate at 2.5%, the lowest ever set in its 150 year existence. Traditionally safe investments are now less profitable, and risky investments are easier to finance.
September 1825
First Steam-Powered Railway
The Stockton and Darlington Railway opens and becomes the world's first railway to use steam locomotives. Primarily used to transport coal, it signals the beginning of the UK integrating this revolutionary technology in its economy.
October 1845
Bubble Begins to Burst
The disbanding of the Railway Board combined with the rapid construction craze means that instead of an organised national rail network, multiple companies are competing wastefully against each other. This reaches a tipping point as not all of the authorised construction could ever be profitable.
August 1850
Abandonment Act Passes
The Abandonment of Railways Act is introduced to allow companies to fully or partly abandon licensed projects of railway track construction. The inefficiencies this caused is one of the biggest legacies of the Railway Mania. Of the 8590 miles of track authorised by Parliament during the bubble, 3560 miles were abandoned.
September 1830
First Passenger Railway
The Liverpool and Manchester Railway becomes the world's first inter-city railway network powered by steam engine. This new technology was beginning to be fully integrated into the lives of the British public.
April 1850
Market Bottoms
After a brief respite in 1846, the railway market finally reaches its bottom. From its peak in August 1845 to April 1850, the market for railway shares fell in value by 66%.
1836-1837
Parliament Increases Support
During this 2 year period, Parliament authorises the construction of 59 new railways totalling over 1500 miles of new track. Politicians are starting to get behind this 'new era' narrative.
1835
10% Annual Dividends
After starting with a stock that paid 2% dividend, the Liverpool and Manchester Railway stock is the first to reach the legal maximum of a 10% annual dividend. Investors start to reap the rewards of their gamble.
may 1846
Dissolution Act Passes
The Railway Companies Dissolution Act allows for firms that have been set up during the Mania (but not yet been granted authorisation to build tracks by Parliament) to be more easily dissolved. The government wants to prevent more railway companies from being tied up in unprofitable business ventures.
July 1844
Railways Act Passes
William Gladstone passes his Railway Regulations Act, which serves to set the standard for quality and quanity of travel. Importantly, it also gives the state the power to nationalise any railway line that generates an annual dividend of 10%. This signals to investors that the government believes in the future of the Railway market.
November 1845
Bank Rate Rises
The Bank of England increases the bank rate to 3.5%, up from 2.5% the previous month. The Bank essentially wants to burst the bubble now, before it can become any worse.
1840
Excitement Cools
Investors and politicians are still skeptical of the viability of the Railway market after the crash of 1837. For the first time since construction began, railway development reverses as more tracks are being abandoned than being built.
March 2000
NASDAQ Peaks
The tech heavy NASDAQ Composite Index closes at a record value of 5050. The index has increased by over 200% in the past 18 months. The faith of investors in the profitability of this new tech is at its all time high.
1999
Tech IPOs are in Vogue
The number of new technology Initial Public Offerings being issued reaches its peak at 371 across the year, valued at a total of $450 billion. In 2001, the total value of new tech IPOs issued will fall to $27 billion.
2000
The Rise of ECN Trading
During this period, ironically, the rise of the internet makes speculative stock market investments much easier. By 2000, 30% of stocks are being traded via Electronic Communications Networks compared to just 3% in 1993.
august 1995
Shares in Netscape go Public
Despite performing poorly against traditional metrics, Netscape's shares are in great demand. The first day of trading saw them start at $28 a share and close at $58.
December 1999
CAPE Reaches a Record High
Shiller's Price-Earnings ratio, used to assess the likelihood of future returns on assets, peaks at a value of 45. The Index has never reached this high before (or since), indicating unsustainable investment practices.
May 1989
World Wide Web is Created
Whilst working at the European Organization for Nuclear Research (CERN), Tim Berners-Lee looks to increase productivity by designing a decentralised system to upload and access documents. This technology would have unimaginably large network effects: the more people that used it, the more efficient it became.
April 2000
Bubble Begins to Burst
The sudden and rapid collapse of the tech market surprises everyone, including skeptics. In one week in April, the NASDAQ falls by 25%, a record for any single week of trading.
2002
The Internet is Here to Stay
Despite the incredible losses suffered by investors, the bubble has fundamentally reshaped society. By the end of 1993, the likes of Mosaic had meant that 14 million people were using the internet. By the end of the bubble in 2002, 663 million people are using the internet. The world will never be the same.
january 1991
World Wide Web is Public
For the first time, people outside of CERN can access this new system. However, the system is incredibily complex to navigate so early adoption remains limited.
October 2002
Market Bottoms
In the previous 30 months, the S&P 500 has lost 48% of its value and the NASDAQ has fallen by 77%. The NASDAQ will not fully recover for another 13 years. Hundreds of companies have failed and an estimated $5 trillion in market value has been lost.
June 1995
Netscape's IPO
Netscape makes the incredibly rare decision to have an Initial Public Offering before the firm has turned a profit. In combination with a desire to raise capital, the founders see this as an opportunity to market their creation.
April 1994
Mosaic is Founded
Mosaic Communications Corporation (later renamed to Netscape) is founded and serves as a web browser that makes the web more accessible to the general public. Netscape would later become the archetype of the tech start up that would define the Dot-Com bubble.
december 2001
Enrol Files for Bankruptcy
Whilst Enron was not a tech firm, the 'creative accounting' employed by the energy giant is symptomatic of the practices of American business as a whole during this period. Misinformation with regards to profitability and valuations has been rife and has impacted the decisions made by investors.
November 1998
Fed Cuts Intersts Rates
The Federal Reserve System reduces the interest rate for a 3rd time in 3 months in response to the Russian financial crisis and in order to bail out a large and important domestic hedge fund. The cut in the funds rate from 5.5% to 4.75% will later be argued as being excessive and will help to fuel the Dot-Com bubble.
July 2000
A Second Peak
Between May and July, internet stocks have risen by 42%, and the NASDAQ appears to be recovering. However, any optimism will be short-lived as from here on in, the bubble will only continue to deflate.
December 1995
Netscape Continues to Excel
Shares in Netscape now trade at $170, giving the firm a total market cap of $6.5 billion. The early success of Netscape will provide the template for tech start-ups and investors during the bubble: early IPOs are the way forward, regardless of the performance against traditional benchmarks.