The financial crisis that began in 1796 and affected Britain and the United States is called the Panic of 1796–1797.
The panic followed a speculative expansion in land and securities markets. When the Bank of England tightened credit and a property-price decline weakened borrowers, financial pressure spread through commercial networks. In the United States, land speculation and the failure of prominent financiers contributed to bank runs and business distress.
The crisis was international in character because credit, trade, and investment connected Britain, the United States, and other Atlantic markets. It produced banking failures and a contraction in economic activity, although its effects differed across regions and industries.
The Panic of 1796–1797 is sometimes confused with the Panic of 1819, which was a later U.S. crisis associated with post-war economic adjustment and tighter credit. It also predates the better-known nineteenth-century panics of 1837 and 1857.