During the 1792 Panic in the United States, William Duer’s market manipulation helped trigger the crisis.
Duer was a former official of the Confederation government and a prominent New York speculator. He borrowed heavily to buy securities, including shares connected with the newly established Bank of the United States, expecting prices to rise. When he could not meet repayment demands, lenders and other speculators also came under pressure.
The panic spread through New York in March 1792. Credit became scarce, securities prices fell sharply, and many brokers faced insolvency. Secretary of the Treasury Alexander Hamilton responded by supporting banks and encouraging lending to stabilize the market.
Duer is sometimes confused with Hamilton because Hamilton organized the rescue, but Duer was the heavily indebted speculator associated with the episode. The crisis helped establish early patterns of federal intervention in American financial markets.