The first major financial crisis in United States history, beginning in 1819, was called the Panic of 1819.
The crisis followed the rapid expansion of credit and land speculation after the War of 1812. The Second Bank of the United States tightened lending and demanded repayment, while falling cotton prices reduced income for farmers and merchants. Banks failed, businesses collapsed, and unemployment increased across the young republic.
Land prices dropped sharply, leaving many borrowers unable to repay mortgages. The downturn was especially severe in western and southern states, where economic growth depended heavily on land sales and agricultural exports. The crisis also produced political anger toward banks and helped shape later debates about federal economic power.
The Panic of 1819 is distinct from the Panic of 1837, which followed another period of speculation and banking instability. It is also earlier than the better-known Panics of 1857 and 1893, so dates are important when comparing the major US financial crises of the nineteenth century.