What name is given to the first major financial panic in the United States, which struck in 1792?

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The first major financial panic in the United States, which struck in 1792, is called the Panic of 1792.

The episode followed aggressive speculation in securities, particularly shares of the Bank of the United States and bonds issued by the new federal government. William Duer and Alexander Macomb borrowed heavily to buy securities, and their failures helped undermine confidence among lenders and investors.

Prices fell sharply in March and April 1792. Treasury Secretary Alexander Hamilton responded by arranging government purchases of securities and encouraging banks to continue lending. These measures helped stop the panic and are an early example of a central-government response to a financial market crisis.

The panic also contributed to the development of rules for the New York securities market. In 1792, brokers signed the Buttonwood Agreement, commonly treated as the foundation of what became the New York Stock Exchange.

Source: Wikipedia · fact-checked Oct. 2026

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