The 1819 US financial crisis was the Panic of 1819.
It followed the end of the Napoleonic Wars, when European demand for American agricultural exports weakened sharply. Falling crop prices made it harder for farmers and merchants to repay loans, while banks tightened credit and called in debts. The Second Bank of the United States also pursued stricter lending policies, adding to the pressure.
The panic caused widespread bank failures, foreclosures, unemployment, and business closures. It was especially severe in western and southern states, where land speculation and agricultural borrowing had expanded rapidly. The crisis helped shape political opposition to banks and influenced the rise of Andrew Jackson’s movement.
The event is often described as the first major financial crisis in the United States during peacetime. It should not be confused with the Panic of 1837, another credit contraction that occurred nearly two decades later.