The financial crisis that began with the collapse of U.S. land speculation in 1796 is called the Panic of 1796–1797.
The crisis developed after a speculative boom in land and securities in the United States and Great Britain. When the boom reversed, falling land values and tighter credit caused banks and businesses to fail, producing a severe contraction in trade and investment.
British financier William Duer was among the prominent speculators whose debts became unsustainable. The failure of his schemes helped trigger a run on banks in New York, while problems also spread through British financial markets.
The Panic of 1796–1797 predates the better-known U.S. panics of 1819, 1837, and 1857. It is therefore sometimes overlooked in general accounts of American financial history, despite being one of the earliest major crises affecting the new republic.