The Panic of 1792 is regarded as the first major financial panic in the United States. It struck in March and April after speculation in government securities and bank shares pushed prices sharply upward.
Alexander Macomb and William Duer were prominent speculators who borrowed heavily to buy securities. When prices fell, defaults spread through the financial system. The crisis threatened the young nation’s credit and exposed the fragility of its still-developing banking arrangements.
Treasury Secretary Alexander Hamilton responded by arranging purchases of government securities and encouraging banks to provide credit. His intervention helped stabilize markets. The episode also contributed to the development of stronger federal financial institutions and later debates over the role of government in markets.