The Panic of 1792 is considered the first major stock-market crash in the United States.
The crisis began after rapid speculation in securities, especially shares of the First Bank of the United States and government debt. Alexander Macomb and other speculators borrowed heavily to buy securities, and falling prices made it difficult to repay loans.
The panic intensified in March 1792 when investors rushed to sell. The Bank of the United States and other banks restricted lending, helping stabilize the market after Treasury Secretary Alexander Hamilton supported the purchase of government securities.
The Panic of 1792 is sometimes confused with later panics because it was brief and centered on the young U.S. financial system. It helped establish the federal government’s role in supporting financial-market stability.