The financial crisis and stock-market crash that began in the United States in 1857 was called the Panic of 1857.
The panic followed the failure of the Ohio Life Insurance and Trust Company in August 1857. That collapse damaged confidence in banks and businesses, while problems in railroad investment and land speculation worsened the downturn. The failure of the SS Central America in September, which was carrying gold from California, further reduced available funds in eastern financial markets.
The crisis spread beyond the United States, affecting Britain and other economies. It was one of the first major international financial crises, although its effects varied by country. The panic also contributed to economic and political tensions in the United States before the Civil War.
The Panic of 1857 is sometimes confused with the Panic of 1837, another major American financial crisis. The later Panic of 1873 was a separate international crisis linked to railroad finance and banking failures.