The 1792 U.S. financial crisis worsened by William Duer’s failed securities speculation was the Panic of 1792.
The crisis developed in March and April 1792, only a few years after the creation of the United States federal government. Speculators borrowed heavily to buy government securities and bank shares, expecting prices to keep rising. William Duer, a former government official, was among the most prominent borrowers, but he could not repay his debts when prices turned downward.
The resulting selling pressure caused bank runs and a sharp shortage of credit. Alexander Hamilton, the Treasury secretary, responded by arranging purchases of government securities and encouraging banks to resume lending. His intervention helped stabilize the young financial system.
The Panic of 1792 is sometimes confused with the later Panic of 1819 or Panic of 1837. It was the first major financial crisis under the new U.S. federal government and helped establish the precedent for emergency government action in financial markets.