The U.S. stock-market panic that began after Alexander Hamilton’s financial reforms was the Panic of 1792.
The panic struck in March and April 1792, only a few years after the U.S. federal government was established. Speculation in securities issued by the new government, including debt linked to the Bank of the United States, helped push prices upward. William Duer and other speculators borrowed heavily to buy securities, increasing the market’s vulnerability.
When lenders tightened credit, prices fell sharply and defaults spread. Hamilton responded by arranging government purchases of securities and encouraging banks to provide liquidity. His actions helped stabilize the young financial system.
The episode is sometimes confused with later panics such as 1819 and 1837. It is especially important because it was one of the first major financial crises in the United States and helped establish the federal government’s role in supporting financial stability.