The first major U.S. stock-market crash, which began in 1792 after speculation in government securities, was the Panic of 1792.
The episode followed aggressive speculation in securities linked to the new United States government. William Duer and Alexander Macomb borrowed heavily to buy securities, while broker calls for repayment increased pressure on prices. As confidence failed, selling spread through Philadelphia and New York markets.
The panic reached its most severe phase in March and April 1792. Treasury Secretary Alexander Hamilton responded by supporting the securities market and encouraging banks to provide liquidity. His actions helped stabilize the financial system and are often cited as an early example of a central-government response to a market panic.
The Panic of 1792 predates later crises such as the Panic of 1819 and the Panic of 1837. It occurred before the New York Stock Exchange’s formal organization, so it is sometimes overlooked when people discuss the history of U.S. market crashes.