The Panic of 1792 is considered the first major securities-market crash in American history.
The crisis developed after speculation in government securities and Bank of the United States shares pushed prices upward. William Duer and Alexander Macomb borrowed heavily to buy securities, and their inability to meet obligations helped trigger a wave of defaults and falling prices in March 1792.
The panic threatened the young nation’s financial system. Treasury Secretary Alexander Hamilton responded by arranging purchases of government securities and supporting banks with liquidity. His intervention helped restore confidence and is an early example of government action to stabilize markets.
The episode was connected to the securities trading network that grew after the 1790s Buttonwood Agreement, which is commonly associated with the origins of the New York Stock Exchange. The Panic of 1792 predates the modern NYSE name and was not caused by computerized trading or a central bank.