The 1819 United States financial crisis was called the Panic of 1819.
It was the first major peacetime financial crisis in the United States and brought a severe economic contraction. Banks reduced lending, land prices fell, businesses failed, and many borrowers could not repay debts. The crisis was especially painful for farmers and land speculators who had bought property with borrowed money.
The post-Napoleonic War economy contributed to the downturn. European demand for American agricultural exports weakened, causing commodity prices to decline. The Second Bank of the United States also tightened credit after a period of expansion, increasing pressure on state-chartered banks and debtors.
The Panic of 1819 is sometimes confused with the Panic of 1837, which was another major American banking and economic crisis. The earlier panic helped shape political criticism of banks and influenced later debates over federal economic power.