 When these two major firms collapsed, it had a ripple effect across Wall Street, causing many firms to fail.Another major cause was the aftereffects of the Panic of 1873, which involved practices such as speculative bonds and overextension of credit to fund the construction of infrastructure.In addition, this failure undermined the confidence people had in Wall Street as it rebuilt after the events of 1873, especially after it became known that John Chester Eno had embezzled over $3 million and fled to Canada.