The 1792 U.S. financial panic that was checked after Alexander Hamilton arranged support for government securities was the Panic of 1792.
The panic occurred in March and April 1792, only a few years after the creation of the United States’ federal financial system. Speculators, including William Duer, had borrowed heavily to buy securities. When confidence weakened and lenders demanded repayment, prices fell and a credit contraction followed.
Treasury Secretary Alexander Hamilton responded by encouraging banks to provide liquidity and by supporting purchases of U.S. government securities. His actions helped restore confidence and limited the damage to the young nation’s financial markets.
The episode is notable because it was one of the first major financial crises under the U.S. Constitution. It also helped establish the federal government’s role in stabilizing markets. The Panic of 1792 should not be confused with the later Panics of 1819, 1837, or 1857, which had different causes and occurred in different economic settings.