The 1792 New York financial crisis involving William Duer’s speculation is called the Panic of 1792.
The panic developed in March and April 1792 after intense speculation in securities issued by the new United States government. William Duer, a former government official, borrowed heavily to buy securities and bank shares. When he could not meet his obligations, confidence weakened and a wave of selling followed.
The crisis threatened banks and brokers in New York and Philadelphia. Treasury Secretary Alexander Hamilton responded by arranging government purchases of securities and encouraging banks to provide credit. His intervention helped stabilize the financial system and is an early example of a central government attempting to contain a market panic.
The crisis occurred only a few years after the US Constitution and the establishment of federal finance. It predates the New York Stock Exchange’s formal organization in 1817, so descriptions of it as a modern exchange crash can be misleading. It was primarily a securities and credit panic.